Alpha, Beta, and Gamma established a partnership. The partnership rules state that income will be distributed by:1) Alpha receives $12,000 salary (2) each partner receives 7% interest on average capital balances (3) remaining income is distributed 1:2:1 (Alpha, Beta, Gamma). The amount draw exceeds income for any partner must be contributed back to the partnership

The year begins with capital as follows: Alpha = $50,000, Beta = $75,000, Gamma = $50,000. During the year, Alpha had draw of $10,000 taken July 1, Gamma took draw of $5,000 on May 1 and another $5,000 on September 1, and Beta took $12,000 draw on January 1.

There are two independent situations. In situation #1, the partnership earns $88,002. In situation #2, the partnership earns $23,000. For each of these, what would be the amount of income distributed to each partner? What would be the ending capital balance for each partner?