Christie and Jergens formed a partnership with capital contributions of $200,000 and $300,000, respectively. Their partnership agreement calls for Christie to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 8% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $107,000, then Christie and Jergens's respective shares are:

Multiple Choice

• $53,500; $53,500.

• $74,500; $32,500.

• $42,800; $64,200.

• $66,000; $24,000.

• $33,000; $74,000.