12-3, Acct 202 ames Summers and Winters formed a partnership on January 1. Summers contributed $90,000 cash and equipment with a market value of $60,000. Winters' investment consisted of: cash, $30,000; inventory, $20,000, all at market values. Partnership net income for year 1 and year 2 was $75,000 and S120,000, respectively. a. Determine each partner's share of the net income for sach year, assuming each of the following independent situations: (1) Income is divided based on the partners' failure to sign an agreement (2) Income is divided based on a 2:1 ratio (Summers: Winters). (3) Income is divided based on the ratio of the partners' original capital investments. (4) Income is divided based on interest allowance of 12% on the original capital investments, salary allowance to Summers of $30,000 and Winters of $25,000, and the remainder to be divided equally. b. Prepare the journal entry to record the allocation of the Year 1 income under alternative (4) above. 2. Brit, Franc, and Scot who share income and loss in a 22:1 ratio, plan to liquidate their partnership. At liquidation, their balance sheet appears as follows. Prepare journal entries for (a) the sale of land and equipment sold as a package for $500.000, (b) the allocation of the gain or loss, (c) the payment of the liabilities, and (d) the distribution of cash to the individual partners. Brit, Franc, and Scot Balance Sheet January 31 Liabilities and Equity Assets Cash $150,000 $221,500 Accounts Payable Brit, Capital Franc, Capital Scot, Capital Total liabilities and equity$750.000 Equipment Land 200.000 400,000 210,000 178,000 140.500 Total assets $750.000