D Question 34 40 pts McCaffrey and Levin have capital balances on January 1 of $50,000 and $35,000, respectively. The partnership-income sharing agreement provides for (1) annual salaries of $15,000 for McCaffrey and $10,000 for Levin, (2) interest at 5% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McCaffrey and 40% by Levin. Prepare a schedule showing the distribution of net income, assuming net income is $55,000. (The Division of Net Income Schedule must be submitted to receive full credit.) What is the division of net income? McCaffrey Levin