Sufficient to cover both salaries and interest

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Reference no: EM13824208

If the partnership agreement specifies salaries to partners, interest on partners' capital, and the remainder on a fixed ratio, and partnership net income is not sufficient to cover both salaries and interest,

only salaries are allocated to the partners.

only interest is allocated to the partners.

the entire net income is shared on a fixed ratio.

both salaries and interest are allocated to the partners.

Reference no: EM13824208

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