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522 | Basic Financial Accounting and Reporting by Prof. WIN Ballada SCORE: NAME: PROFESSOR: SECTION: Problem #9 Order of Priority On Jan. 1, 2018, the Mones, Pitular and Tuazon Partnership was formed with initial investments by the partners as follows: Mones P2,000,000 Pitular 1,000,000 Tuazon 1,000,000 According to the partnership agreement, profit or loss is to be divided among the partners as follows: 1. Salaries of P120,000 for Mones, P60,000 for Pitular and P60,000 for Tuazon. 2. Interest at 5% on the original capital balances. 3. The remainder to be divided among Mones, Pitular, and Tuazon in a ratio of 4:1:1, respectively. The partnership reported profit of P350,000 for the year ended Dec. 31, 2018. Required: Determine the partners' share in the profit under each of the following independent situations: 1. Partner's salaries and interest on capital balances should be fully allocated and any deficiency between these allocations and profit is to be divided among Mones, Pitular, and Tuazon in the ratio 4:1:1, respectively. 2. Partner's salaries and interest on capital balances should be made only to the extent that the profit can provide