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Cosmo and Ellis began a partnership by investing $40,000 and $51,000, respectively. During its first year, the partnership earned $185,000. Prepare calculations showing how the $185,000 income should be allocated to the partners under each of the following three separate plans for sharing income and loss:(1) The partners failed to agree on a method to share income.(2) The partners agreed to share income and loss in proportion to their initial investments(3) The partners agreed to share income by granting a $52,500 per year salary allowance to Cosmo, a $42,500 per year salary allowance to Ellis, 10% interest on their initial capital investments, and the remaining balance shared equally.
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