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Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a...

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Accounting

Exercise 11-5 Profit allocation in a partnership LO3
Dallas and Weiss formed a partnership to manage rental properties, by investing $116,000 and $174,000, respectively, During its first year, the partnership recorded profit of $412,000.
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 falled to agree on a method of sharing profit.
\table[[,\table[[Share to],[Dallas]],\table[[Share to],[Weiss]],Total],[,,,]]
b. The partners agreed to share profits and losses in proportion to their initial investments.
\table[[,\table[[Share to],[Dalias]],\table[[Share to],[Weiss]],Total],[,,,]]
c. The partners agreed to share profit by allowing a $144,000 per year salary allowance to Dallas, an $74,000 per year salary allowance to Weiss, 25% interest on their initial investments, and sharing the balance equally. (Leave no cell blank. Enter "0" when the answer is zero.)
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