Required information Use the following information for the Exercises below. The

Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below. Ramer and Knox began a partnership by investing $76,000 and $114,000, respectively. Exercise 12-6 Income allocation in a partnership LO P2 The partners agreed to share net income and loss by granting annual salary allowances of $63,000 to Ramer and $45,000 to Knox, 15% interest allowances on their investments, and any remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values) Required: 2a. Determine the partners' shares of Ramer and Knox given a first-year net income of $111,800. 2b. Determine the partners' shares of Ramer and Knox given a first-year net loss of $29,800. Complete this question by entering your answers in the tabs below Req 2A Req 2B Determine the partners' shares of Ramer and Knox given a first-year net income of $111,800

Explanation / Answer

2A

Allocation of Partnership Income

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2B

Allocation of Partnership Income

Ramer Knox Total Net Income (loss) 111,800 Salary allowances 63,000 45,000 (108,000) Balance of income (loss) 3,800 Interest allowances 11,400 (76,000*15%) 17,100 (114,000*15%) (28,500) Balance of income (loss) (24,700) Balance allocated equally (12,350) (12,350) 24,700 Balance of income (loss) 0 Shares of the partners 62,050 49,750

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