Exercise $12-6($Static$)$ Income allocation in a partnership LO P$2$

Ramer and Knox began a partnership by investing $$60,000$ and $$90,000,$ respectively. The partners agreed to share net income and

loss by giving annual salary allowances of $$50,000$ to Ramer and $$40,000$ to Knox,$10\%$ interest allowances on their investments, and

any remaining balance shared equally.

Note: Enter all allowances as positive values. Enter losses as negative values.

Required:

Determine each partner's share given a first$-$year net income of $$98,800.$

Determine each partner's share given a first$-$year net loss of $$16,800.$