Dividing LLC Income expenses were

$520,000

, for a net income of

$148,000

.\ a. Determine the division of

$148,000

net income for the year.\ Schedule of Division of Net Income\ \\\\table[[Line Item Description,Farley,,Clark,,Total,],[Salary allowance,

$40,000

,

,

s

,

,

$

,

Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $40,000 and $30,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income Feedback 7 Check My Work a. Set up a column for each partner and a total column. Allocate salary allowances, then distribute the remaining income based on the income sharing agreement