Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $116,000 and $174,000, respectively. Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $36,000 and $46,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $46,000, respectively, and the remainder divided equally. Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $ Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $58,000 and $46,000 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 Farley Clark Total Salary allowance 58,000 $ 46,000 104,000 Remaining income 26,400 17,600 44,000 Net income 84,400 $ 63,600 148,000 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. For a compound transaction, if an amount box does not require an entry, leave it blank. Revenues (1) 148,000 X Martin Farley, Member Equity X 84,400 X Ashley Clark, Member Equity X 63,600 Salary Expense X (2) Martin Farley, Member Equity 58,000, Ashley Clark, Member Equity 46,000 Martin Farley, Drawing 58,000 Ashley Clark, Drawing 46,000