Distribution of Income or Losses: Salaries and Interest Isha Shah and Brian Ruben agreed to form a partnership. Shah contributed $400,000 in cash, and Ruben contributed assets with a fair market value of $800,000. The partnership, in its initial year, reported net income of $240,000. Assume that the partnership agreement states that Shah and Ruben are to receive salaries of $40,000 and $48,000, respectively; that Shah is to receive 6 percent interest on his capital balance at the beginning of the year; and that the remainder of income and losses are to be shared equally. Calculate the distribution of the income or losses under the following conditions: 1. Income totaled $240,000 before deductions for salaries and interest. 2. Income totaled $96,000 before deductions for salaries and interest. 3. There was a loss of $4,000. 4. There was a loss of $80,000.