Newberg and Scampi began a partnership by investing \(\$ 52,000\) and \(\$ 78,000\), respectively. During its first year, the partnership earned \(\$ 180,000\).

\section*{Required}

Prepare calculations showing how the income should be allocated to the partners under each of the following plans for sharing net incomes and losses:

a. The partners failed to agree on a method of sharing income.

b. The partners agreed to share incomes and losses in their investment ratio.

c. The partners agreed to share income by allowing \(10 \%\) interest on investments, an \(\$ 85,000\) per year salary allowance to Newberg, a \(\$ 65,000\) per year salary allowance to Scampi, and the balance equally.