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The ames and johnson partnership allocates profits and losses 80% to ames and 20% to johnson. smith enters the partnership and receives a 25% share of profits and losses. what share of profits and losses does ames now share

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dubeyshailja64

Ames will share a profit and loss of 60% after the changes in partnership.

What is a partnership?

When two or more than two individual comes together to establish a business and participate in decisions making by sharing profit and loss refers to a partnership.

Working note for Ames shares -

Ames share   in the company           = 80%             = 80/100

Johnson share   in the company    = 20%              = 20/100

The share of new partner Smith  = 25/100

Remaining share = 1 - 25/100       = 75/100

Now, Ames New share = 75/100 × 80/100

                                     = 60/100

                                     = 60%

Therefore, 60% share of profits and losses will be shared by Ames in current.

Learn more about the partnership, here:

https://brainly.com/question/14485355

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