1After one year of operation of the Smith & Kline partnership, Smith's capital account contains a balance of $46,000 and Kline's capital account contains $54,000. Each partner originally invested $40,000 in the firm. The partnership agreement provides for yearly salary allowances of $12,000 to Smith and $15,000 to Kline, with any balance to be shared equally. There were no additional investments during the year, and no withdrawals were made except for the stipulated salary allowances. The net income for the partnership must have been:

A.$27 000

B.$45 000

c. $40 000