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At the end of its first year of operations on December 31, 2020, Crane Companys accounts show the following. Partner Drawings Capital Art Niensted $23,200

At the end of its first year of operations on December 31, 2020, Crane Companys accounts show the following.

Partner

Drawings

Capital

Art Niensted $23,200 $46,700
Greg Bolen 14,100 31,500
Krista Sayler 10,800 26,000

The capital balance represents each partners initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners capital accounts. To record the division of net income for the year 2020 under each of the following independent assumptions.

1. Net income is $31,600. Income is shared 6:3:1.
2. Net income is $41,200. Niensted and Bolen are given salary allowances of $14,900 and $10,400, respectively. The remainder is shared equally.
3. Net income is $19,900. Each partner is allowed interest of 10% on beginning capital balances. Niensted is given a $15,780 salary allowance. The remainder is shared equally.

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