Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. Exercise 12-5 Part...
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Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. Exercise 12-5 Part 2 Income allocation in a partnership LO P2 2. The partners agreed to share income and loss in proportion to their initial investments. Net income is $160,000. (Do not round intermediate calculations.) Fraction to Allocate Ramer Fraction to Allocate Knox Total Income Allocated Ramer's Share Knox's Share of of Income Income Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. Exercise 12-5 Part 3 Income allocation in a partnership LO P2 3. The partners agreed to share income by giving a $50,000 per year salary allowance to Ramer, a $40,000 per year salary allowance to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $160,000. (Enter all allowances as positive values. Enter losses as negative values.) Ramer Knox Total Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners
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