Dividing Partnership Net Income

Required:

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

1. Annual salary allowance to Jack of $115,920.
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 $66,000 and $87,000, respectively, in their January 1 capital balances. Net income for the year was $207,000. How much is distributed to Jack and Stevens?

Note: Compute partnership share. Jack: $fill in the blank 1 Stevens: $fill in the blank 2