E-12-4)Dariah and Farrah began a partnership by investing $64,000and $58,000 respectively. During its first year, the partnershipearned $175,000 income should be allocated to the partners undereach of the following three separate plans for sharing income andloss: (1) the partners failed to agree on a method to share income;(2) the partners agreed to share income and loss in proportion totheir initial investments ( round amounts to the nearest dollar);and (3) the partners agreed to share income by granting a $52,000per yer salary allowance to Daria , a $42,000 per year salaryallowance to Farrah , 8% interest on their initial capitalinvestments, and the remaining balance shared equally.
E-12-5
Assume that the partners of exercise 12-4 agreed to share netincome and loss by granting annual salary allowances of $52,000 toDaria and $42,000 to Farrah, 8% interest allowances on theirinvestments, and any remaining balance shared equally.
1- Determine the partners' shares of Daria and Farrah given a firstyear net income of $98,800.
2- Determine the partners' share of Daria and Farrah given a firstyear net loss of $16,800.
E-12-5
Assume that the partners of exercise 12-4 agreed to share netincome and loss by granting annual salary allowances of $52,000 toDaria and $42,000 to Farrah, 8% interest allowances on theirinvestments, and any remaining balance shared equally.
1- Determine the partners' shares of Daria and Farrah given a firstyear net income of $98,800.
2- Determine the partners' share of Daria and Farrah given a firstyear net loss of $16,800.
Related questions
Kramer and Knox began a partnership by investing $70,000 and$76,000, respectively. The partners agreed to share net income andloss by granting annual salary allowances of $51,500 to Kramer and$41,500 to Knox, 12% interest allowances on their investments, andany remaining balance shared equally.
| 1. | Determine the partnersâ shares of Kramer and Knox given afirst-year net income of $89,800. Kramer Knox net income-89800 salary allowances balance of income(loss) interest allowances balance of income(loss) balance allocated equally balance of income(loss) shares of the partners
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