Ambiguity LLP has four partners, with equity balances on January 1, 2015, as follows:

Von Porter ............................. $68,500

Elisse Rand ............................ 75,000

Ming Foo ..............................49,900

David Estevan ........................35,460

Rand contributed an additional $50,000 to Ambiguity LLP on June 1, 2015. Porter received an annual salary allowance of $85,600 during 2015. The partners' equity accounts are also credited with 5% interest on each partner's January 1 capital balance. Any remaining income is to be shared in a ratio of 4:3:2:1 among the partners. The net income for Ambiguity LLP for 2015 was $544,433. The salary and interest allowances were distributed to the partners during the year.

Instructions

1. Determine the division of income among the four partners.

2. Prepare the journal entries to close the net income and withdrawals to the individual partner equity accounts.

3. Prepare a statement of changes in partnership equity for 2015.

4. Identify the amount of partnership income that Von Porter will report on his 2015 personal tax return. Why might this amount be different from the amount of cash he withdrew from the partnership during 2015?