C. Eastwood, A. North, and M. West are manufacturers representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows:

C. Eastwood, Capital

9/1	9,500		1/1	31,100
			5/1	6,400

A. North, Capital

3/1	9,400		1/1	41,000
			7/1	6,000
			9/1	5,600

M. West, Capital

8/1	13,800		1/1	51,600
			4/1	8,300
			6/1	4,000

Required:

For each of the following independent income-sharing agreements, prepare an income distribution schedule.

a.

Salaries are $16,200 to Eastwood, $20,500 to North, and $19,500 to West. Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $77,700. (Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

	Eastwood	North	West	Total
Profit ratio				0
Ending capital
Net income
Salary				0
Bonus				0
Interest on ending capital balance				0
Residual income (deficit)				$0
Allocate				0
Total	$0	$0	$0	$0

b.

Interest is 10 percent of weighted-average capital balances. Salaries are $25,000 to Eastwood, $21,800 to North, and $26,300 to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary. Any remainder is divided equally. Net income was $68,990. (Do not round intermediate calculations. Round the final answers to nearest whole dollar. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

	Eastwood	North	West	Total
Profit ratio				0
Average capital
Net income
Interest on average capital balance				0
Salary				0
Bonus				0
Residual income (deficit)				$0
Allocate				0
Total	$0	$0	$0	$0

c.

West receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are $22,100 to Eastwood, $18,300 to North, and $15,400 to West. Interest is 10 percent of beginning capital balances. Eastwood, North, and West divide any remainder in an 8:7:5 ratio, respectively. Net income was $95,160. (Do not round intermediate calculations. Amounts that are to be deducted from an individual partner's capital balance should be entered with a minus sign.)

	Eastwood	North	West	Total
Profit ratio				0
Beginning capital
Net income
Bonus				0
Salary				0
Interest on beginning capital balance				0
Residual income (deficit)				$0
Allocate				0
Total	$0	$0	$0	$0