Dividing Partnership Net Income Required: Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Jack of $159,300. 2. Interest of 6% on each partner's capital balance on January 1. 3. Any remaining net income divided to Jack and Stevens, 1:2. Jack and Stevens had $57,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $270,000. How much is distributed to Jack and Stevens? Note: Compute partnership share. Jack: $ Stevens