Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $41,000 and $34,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $25,000 for McGill and $17,000 for Smyth, (2) interest at 12% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (a) Your answer is partially correct. Try again. (1) Prepare a schedule showing the distribution of net income, assuming net income is $85,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).) DIVISION OF NET INCOME McGINI Smyth Total Salary allowance 25000 17000 42000 $1 Interest allowance 4920 4080 9000 x Total salaries and interest Remaining income / deficiency 204001 13600 34000 Total division of net income 85000 85000 (2) Prepare a schedule showing the distribution of net income, assuming net income is $23,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) DIVISION OF NET INCOME MCGIII Smyth Total Salary allowance 25000 17000 42000 $ Interest allowance Remaining income / deficiency 20400 13600 340001 Total division of net income 85000 85000 (2) Prepare a schedule showing the distribution of net income, assuming net income is $23,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g.-15,000, (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 25000 17000 42000 $ X X Interest allowance > Total salaries and interest 4920 4080 9000 Remaining income / deficiency 16800 11200 28000 Total division of net income 51000 51000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR EXERCISE Attempts: 1 of 3 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above