Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $59,000 and $47,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:1. 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 Line Item Description Farley Clark Total Salary allowance 59,000 47,000 106,000 Remaining income 31,500 V 10,500 42,000 Net income 90,500 V 57,500 148,000 Feedback 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. b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. If an amount box does not require an entry, leave it blank. (1) Revenues 668,000 Expenses 520,000 Martin Farley, Member Equity 148,000 X 148,000 X Ashley Clark, Member Equity 148,000 X (2) Martin Farley, Member Equity 59,000 Ashley Clark, Member Equity 47,000 V Martin Farley, Drawing 59,000 V Ashley Clark, Drawing 47,000