A summary of changes in the capital accounts of the Katie, Lynda, and Molly partnership for 2011, before closing partnership net income to the capital accounts, is as follows:

REQUIRED: Determine the allocation of the 2011 net income to the partners under each of the following sets of independent assumptions:1. Partnership net income is $60,000, and profit is divided on the basis of average capital balances during the year.2. Partnership net income is $50,000, Katie gets a bonus of 10% of income for managing the business, and the remaining profits are divided on the basis of beginning capital balances.3. Partnership net loss is $35,000, Molly receives a $12,000 salary, each partner is allowed 10% interest on beginning capital balances, and the remaining profits are divided equally.

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Lynda Capital Katie Total Capital Molly Capital Capital Balance January 1, 2011 $80,000 $80,000 $90,000 $250,000 Investment April 1 Withdrawal May 1 Withdrawal July 1 Withdrawal September 1 (15,000) (15,000) (10,000) (10,000) (30,000) (30,000) $215,000 $90,000 $65,000 $60,000