Craig and Gary formed a partnership dividing income as follows, as written in the partnership agreement: 1. Annual salary allowance to Craig of $45,000 2. Interest of 5% on each partners capital balance on January 1 3. Any remaining net income divided equally Craig and Gary had $25,000 and $140,000, respectively, in their January 1 capital balances. Net income for the year was $300,000. How much net income should be distributed to Craig?