Dallas and Weiss formed a partnership to manage rental properties, by investing $207,000 and $243,000,...
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Accounting
Dallas and Weiss formed a partnership to manage rental properties, by investing $207,000 and $243,000, respectively. During its first year, the partnership recorded profit of $551,000.
Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses
: a. The partners failed to agree on a method of sharing profit
. b. The partners agreed to share profits and losses in proportion to their initial investments.
c. The partners agreed to share profit by allowing a $160,000 per year salary allowance to Dallas, an $90,000 per year salary allowance to Weiss, 25% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.)
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