C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for \(20 \mathrm{X} 1\) were as follows:

\section*{Required}
For each of the following independent income-sharing agreements, prepare an income distribution schedule.

a. Salaries are \(\$ 15,000\) to Eastwood, \(\$ 20,000\) to North, and \(\$ 18,000\) to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Any remainder is divided by Eastwood, North, and West in a 3:3:4 ratio. Net income was \(\$ 78,960\).

b. Interest is 10 percent of weighted-average capital balances. Salaries are \(\$ 24,000\) to Eastwood, \(\$ 21,000\) to North, and \(\$ 25.000\) to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary. Any remainder is divided equally. Net income was \(\$ 68,080\).

c. West receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are \(\$ 21,000\) to Eastwood, \(\$ 18,000\) to North, and \(\$ 15,000\) to West. Interest is 10 percent of beginning capital balances. Any remainder is divided by Eastwood, North, and West in an 8:7:5 ratio. Net income was \(\$ 92,940\).

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9/1 C. Eastwood, Capital 8,000 1/1 30.000 3/1 5/1 6.000 A. North, Capital M. West, Capital 9.000 1/1 40,000 8/1 12,000 1/1 50.000 7/1 5,000 4/1 7,000 9/1 4,000 6/1 3,000