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 investment

$82000 + 123000=205000$

Step2: Calculate Ramer's fraction

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

Step3: Calculate Ramer's share of income

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

Step4: Calculate Knox's fraction

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

Step5: Calculate Knox's share of income

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

Answer:

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