Jensen and Stafford began a partnership to start a hardwoodflooring installation business, by investing $179,000 and $219,000,respectively. They agreed to share profits/(losses) by providingyearly salary allowances of $169,000 to Jensen and $94,000 toStafford, 15% interest allowances on their investments, and sharingthe balance 3:2.
Required:
1. Determine each partner’s share if the first-year profitwas $439,000.
2. Independent of (1), determine each partner’sshare if the first-year loss was $114,000. (Negativeanswers should be indicated by a minus sign.)
