EX 12-7 Dividing LLC income Martin Farley and Ashley Clark formed a limited liability company with an oper agreement that provided a salary allowance of $40,000 and $30,000 to each membes respectively. In addition, the 3:2. The two members withdrew amounts equal to their salary allowances. $668,000 and expenses were $520,000, for a net income of $148,000 a. Determine the division of $148,000 net income for the year onu. 2 ating operating agreement specified an income-sharing ratio of Revenues were b. Provide journal entries to close the (D revenues and expenses and (2) drawing accounts for the two members If the net income was less than the sum of the salary allowances, how would income be divided between the two members of the LLO