Dividing Partnership Net Income Required: Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: 1. Annual salary allowance to Stevens of $169,290. 2. Interest of 5% 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 $81,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $297,000. How much is distributed to Jack and Stevens? Note: Compute partnership share. Jack: $ Stevens: $ Revaluing and Contributing Assets to a Partnership Demarco Lee invested $72,000 in the Camden & Sayler partnership for ownership equity of $72,000. Prior to the investment, equipment was revalued to a market value of $386,000 from a book value of $293,000. Kevin Camden and Chloe Sayler share net income in a 1:2 ratio. Required: a. Provide the journal entry for the revaluation of equipment. For a compound transaction, if an amount box does not require an entry, leave it blank. Equipment Kevin Camden, Capital Chloe Sayler, Capital b. Provide the journal entry to admit Lee. Cash 72,000 Demarco Lee, Capital 72,000