Accounting and Financial Reporting II

A partnership comprised of two partners has the following information regarding income and loss allocation:

Partner #1 Partner #2

Initial investment 30,000 40,000

Salary allowance 25,000 20,000

Interest allowance in initial investment 10% 10%

Remainder 50% 50%

In its first year of business, the partnership generates an income of 80,000. Prepare a schedule showing how much income should be allocated to each partner.