30. Allocation of interest on capital accounts and profit to partners Assume that there are three partners in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $50,000. In addition, assume that the Partnership Agreement provides for an interest allocation of 5% based on the weighted-average Capital Account balance during the year. There is a balance in each Capital Account for Partners A and B of $500,000 for the full year Partner C, however, was admitted to the partnership for an initial capital contribution of $300,000 on March 31. Finally, assume that the partnership revenues less expenses (other than salary to Partner C and interest on capital balances) are $400,000, and that the Partnership Agreement provides for a shar- ing ratio of 40%/40%/20% for Partners A, B, and C, respectively. Prepare a schedule for the allocation of profit to the partners