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Problem 1: Ahmed and Ali are partners in a small business. Their partnership agreement states that net income is divided based on annual salaries of $20 000 for Ahmed and $25 000 for Ali, and an income ratio of 3:2. Calculate the net income allocation and record the journal entry, based on the following unrelated situations:
(a) net income of $100 000
(b) net loss of $4 000.
question original question the net income for the year ended december 31 2011 for tax consultants inc. was 720000.
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