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Jensen and Stafford began a partnership by investing $160,000 and $200,000, respectively. They agreed to share net incomes and losses by allowing yearly salary allowances of $150,000 to Jensen and $75,000 to Stafford, 20% interest allowances on their investments, and the balance 3:2.

Required

1. Determine each partner’s share if the first-year net income was $420,000.

2. Independent of (1), determine each partner’s share if the first-year net loss was $95,000.

Required

1. Determine each partner’s share if the first-year net income was $420,000.

2. Independent of (1), determine each partner’s share if the first-year net loss was $95,000.

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