P 16-3 Partnership income allocation Ash and Bar are partners with capital balances on January 1, 2016, of $70,000 and $80,000, respectively.

The partnership agreement provides that each partner is allowed 10 percent interest on beginning capital balances; that Ash receives a salary allowance of $20,000 per year and a 20 percent bonus of partnership income after interest, salary allowance, and bonus; and that remaining income is divided equally.

REQuIRED: Prepare an income distribution schedule to show how the $160,000 partnership net income for 2016 should be divided.