Dividing Partnership Net Income

Required:

Steve Jack and Chelsy Poodle formed a partnership, dividing income as follows:

Annual salary allowance to Jack of $176,400.

Interest of 5% on each partner's capital balance on January 1.

Any remaining net income divided to Jack and Poodle, 1:2.

Jack and Poodle had $77,600 and $82,520, respectively, in their January 1 capital balances. Net income for the year was $315,000. How much is distributed to Jack and Poodle?

Note: Compute partnership share to two decimal places. Round final answers to the nearest whole dollar.

Jack: $______

Poodle: $______