required information (the following information applies to the questions displayed below) ramer and knox…

required information (the following information applies to the questions displayed below) ramer and knox began a partnership by investing $82,000 and $123,000 respectively. during its first year, the partnership earned $240,000. prepare calculations showing how the $240,000 income is allocated under each separate plan for sharing income and loss. 2. the partners agreed to share income and loss in proportion to their initial investments. net income is $240,000 note: do not round intermediate calculations. fraction to allocate ramer ramers share of income fraction to allocate knox knoxs share of income total income allocated

required information (the following information applies to the questions displayed below) ramer and knox began a partnership by investing $82,000 and $123,000 respectively. during its first year, the partnership earned $240,000. prepare calculations showing how the $240,000 income is allocated under each separate plan for sharing income and loss. 2. the partners agreed to share income and loss in proportion to their initial investments. net income is $240,000 note: do not round intermediate calculations. fraction to allocate ramer ramers share of income fraction to allocate knox knoxs share of income total income allocated

Answer

Explanation:

Step1: Calculate total initial investment

$82000 + 123000=205000$

Step2: Calculate Ramer's fraction to allocate

$\frac{82000}{205000}=\frac{2}{5}$

Step3: Calculate Ramer's share of income

$240000\times\frac{2}{5} = 96000$

Step4: Calculate Knox's fraction to allocate

$\frac{123000}{205000}=\frac{3}{5}$

Step5: Calculate Knox's share of income

$240000\times\frac{3}{5}=144000$

Step6: Calculate total income allocated

$96000 + 144000=240000$

Answer:

Fraction to Allocate Ramer Ramer's Share of Income Fraction to Allocate Knox Knox's Share of Income Total Income Allocated
$\frac{2}{5}$ $96000$ $\frac{3}{5}$ $144000$ $240000$