Dividing Partnership Net Income

Steve King and Chelsy Bernard formed a partnership, dividing income as follows:

1. Annual salary allowance to Bernard of $93,810.
2. Interest of 7% on each partner's capital balance on January 1.
3. Any remaining net income divided to King and Bernard, 1:2.

King and Bernard had $93,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $159,000.

Required:

How much net income should be distributed to King and Bernard? King: Bernard:

Dividing Partnership Net Income Steve King and Chelsy Bernard formed a partnership, dividing income as follows: 1. Annual salary allowance to Bernard of $93,810. 2. Interest of 7% on each partner's capital balance on January 1. 3. Any remaining net income divided to king and Bernard, 1:2. King and Bernard had $93,000 and $93,000, respectively, in their January 1 capital balances. Net income for the year was $159,000. Required: How much net income should be distributed to King and Bernard? King: $ Bernard: $