Carl and David have principal balances of $100,000 and $300,000, respectively. Carl dedicates full time and David part time to the business. Determine the division of $90,000 of net income under each of the following assumptions for each owner: Label each answer clearly and show all work.

(a) There is no agreement as to the division of net income.

(b) Due to principal balances.

(c) In proportion to the time devoted to business.

(d) 10% interest on principal balances and the rest in equal parts.

(e) 10% interest on principal balances, salaries of $40,000 for Carl and $20,000 for David, and the rest equally.