Dividing Partnership Net Income Required: Steve Jack and Chelsy Dane formed a partnership, dividing income as follows: 1. Annual salary allowance to Jack of $85,800. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Dane, 1:2. Jack and Dane had 596,000 and $87,000, respectively, in their January 1 capital balances. Net Income for the year was $156,000. How much is distributed to Jack and Dane? Note: Compute partnership share. Jack: $ Dane: $