Jacob, Deric, and Jason are partners in the South Central Company. The partnership agreement. states that Jacob is to receive 8 percent interest on his capital balances at the beginning of the year, Deric is to receive a salary of $100,000 a year, and Jason will be paid interest of 6 percent on his average capital balance during the year. Jacob, Deric, and Jason will share any income or loss after salary and interest in a 5:3:2 ratio. Jacob’s capital balance at the beginning of the year was $600,000, and Jason’s average capital balance for the year was $720,000.

Required

Determine each partner’s share of income and losses under the following conditions. In each case, the income or loss is stated before the distribution of salary and interest.

1. Income was $545,200.

2. Income was $155,600.

3. The loss was $56,800.