Dallas and Weiss formed a partnership to manage rental properties, by investing $132,000 and $198,000, respectively....

  

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Dallas and Weiss formed a partnership to manage rental properties, by investing $132,000 and $198,000, respectively. During its first year, the partnership recorded profit of $451,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. Profit Share to Weiss Loss Share to Dallas $ 225,500 $225,500 Total 451,000 b. The partners agreed to share profits and losses in proportion to their initial investments. Share to Dallas Share to Weiss $ 180,400 $ 270,600 Total $ 451,000 c. The partners agreed to share profit by allowing a $148,000 per year salary allowance to Dallas, an $78,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.) Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of profit Share to Dallas Share to Weiss $ 148.000 $ 78,000 15,840 23,760 $ 163,840 $ 101,760 92,700 92,700 Total 451,000 (265,600) $ 185,400 Balance allocated equally: (185,400) Balance of profit $ 92.700 Shares of each partner $256,540 $ 194,460 $ 543,700 "Red text indicates no response was expected in a cell or a formule-based calculation is incorrect; on points deducted Dallas and Weiss formed a partnership to manage rental properties, by investing $132,000 and $198,000, respectively. During its first year, the partnership recorded profit of $451,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. Profit Share to Weiss Loss Share to Dallas $ 225,500 $225,500 Total 451,000 b. The partners agreed to share profits and losses in proportion to their initial investments. Share to Dallas Share to Weiss $ 180,400 $ 270,600 Total $ 451,000 c. The partners agreed to share profit by allowing a $148,000 per year salary allowance to Dallas, an $78,000 per year salary allowance to Weiss, 12% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.) Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of profit Share to Dallas Share to Weiss $ 148.000 $ 78,000 15,840 23,760 $ 163,840 $ 101,760 92,700 92,700 Total 451,000 (265,600) $ 185,400 Balance allocated equally: (185,400) Balance of profit $ 92.700 Shares of each partner $256,540 $ 194,460 $ 543,700 "Red text indicates no response was expected in a cell or a formule-based calculation is incorrect; on points deducted

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Calculation of sharing of profit and loss in partnership a In the absence of an agreement about the ... View the full answer