Ernst, Whinney, and Young formed the EWY Partnership. They agreed to share profits in a 3:1:2 ratio. However, they also agreed that each partner would receive a 12% interest on average capital balances, and they agreed to monthly salary allowances of $3,750 for Mike and $6,000 for John. Average capital balances were as follows: Jim 300,000 Mike 240,000 John 180,000 Required: a) Compute the net income (loss) that will be allocated to each partner assuming the partnership incurred a $40,000 net operating loss. Prepare a schedule in good form to support your answer and to report to the partnership. b) Compute the net income (loss) that will be allocated to each partner assuming the partnership incurred a $275,000 net operating income. Prepare a schedule in good form to support your answer and to report to the partnership.