Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate plan for sharing income and loss. . The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners Ramer Knox Total
Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate plan for sharing income and loss. . The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000. Note: Enter all allowances as positive values. Enter losses as negative values. Net Income Salary allowances Interest allowances Total salary and interest Balance of income Balance allocated equally Balance of income Shares of the partners Ramer Knox Total
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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![Required information
[The following information applies to the questions displayed below.]
Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the
partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate
plan for sharing income and loss.
3. The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance
to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000.
Note: Enter all allowances as positive values. Enter losses as negative values.
Net Income
Salary allowances
Interest allowances
Total salary and interest
Balance of income
Balance allocated equally
Balance of income
Shares of the partners
Ramer
Saved
Knox
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ed20830-1da0-4224-9207-641673686550%2F9ea11042-82e5-4dfc-a886-5c8c4cef9dea%2Fs5ptng_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Ramer and Knox began a partnership by investing $88,000 and $132,000, respectively. During its first year, the
partnership earned $255,000. Prepare calculations showing how the $255,000 income is allocated under each separate
plan for sharing income and loss.
3. The partners agreed to share income by giving a $69,000 per year salary allowance to Ramer, a $43,000 per year salary allowance
to Knox, 10% interest on their initial capital investments, and the remaining balance shared equally. Net income is $255,000.
Note: Enter all allowances as positive values. Enter losses as negative values.
Net Income
Salary allowances
Interest allowances
Total salary and interest
Balance of income
Balance allocated equally
Balance of income
Shares of the partners
Ramer
Saved
Knox
Total
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