CalculationsandJournalEntriesfortheAllocationofPartnershipProfitorLoss Net income for Levin-Tom partner ship for 20X9 was $125,000. Levin and Tom have agreed to distribute partner ship net income according to the following plan:

Additional information for 20X9 follows:

• Levin began they ear with a capital balance of $75,000.
• Tom began the year with a capital balance of $100,000.
• On March 1,Levin invested an additional $25,000 into the partnership.
• On October 1,Tom invested an additional $20,000 into the partnership.
• Throughout 20X9, each partner withdrew $200 per week in anticipation of partnership net income. The partners agreed thatthesewithdrawalsarenottobeincludedinthecomputationofaveragecapitalbalancesforpurposesofincomedistributions.

Required:

1. Prepareaschedulethatdisclosesthedistributionofpartnershipnetincomefor20X9.Showsupportingcomputationsingood form.
2. Prepare the statement of partners' capital at December 31, 20X9.
3. Howwouldyouranswertopartachangeifalloftheprovisionsoftheincomedistributionplanwerethesameexceptthatthesalarieswere$45,000 to Levin and $60,000 to Tom?

Interestonaveragecapitalbalances Bonusonnetincomebeforethebonusbuta fterintere st onaveragecapitalbalances Sa Residual(ifpositive) Re sidual (Ifnegative) laries Levin 7% 12% $ 40,000 60% 50% Tom 7% $ 50,000 0 40%/ 50%