The Simra Brothers Partnership had the following statement of partners’ equity for the years ended December 31, 2019, and 2020. This is similar to the statement of partners’ equity shown in Exhibit 12–3. 

Required

1. What was the profit-and-loss-sharing ratio in 2019?

2. Refer to Amin’s contribution, which was made in cash. How much cash did Amin contribute to the partnership?

3. What percentage of interest did Amin obtain?

4. Why do Harry and Sunny have additions to their balances as a result of Amin’s contribution?

5. What was the profit-and-loss-sharing ratio in 2020?

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SIMRA BROTHERS PARTNERSHIP Statement of Partners' Equity For the Years Ended December 31, 2019, and 2020 Harry Simra, Sunny Simra, Amin Simra, Total Partnership Capital Capital Capital Capital Balance, Jan. 1, 2019 $ 75,000 $ 50,000 $125,000 Net income for 2019 20,000 30,000 50,000 Balance, Dec. 31, 2019 95,000 80,000 175,000 Amin's contribution 2,000 3,000 $45,000 50,000 Net income for 2020 8,000 56,000 16,000 80,000 Subtotal 105,000 139,000 61,000 305,000 Less: partner withdrawals 12,000 16,000 10,000 38,000 Balance, Dec. 31, 2020 $ 93,000 $123,000 $51,000 $267,000