Jamison and Blue form a partnership with capital contributions of $600,000 and $800,000, respectively. Their partnership agreement calls for Jamison to receive $120,000 per year in salary. Also, each partner is to receive an interest allowance equal to 10% of the partner’s beginning capital contributions, with any remaining income or loss divided equally. If net income for its initial year is $270,000, then Jamison’s and Blue’s respective shares are:

a. $135,000; $135,000

b. $154,286; $115,714

c. $120,000; $150,000

d. $185,000; $85,000

e. $85,000; $185,000 AppendixLO1