Exercise 12-04 a-b (Part Level Submission) (Video) McGill and Smyth have capital balances on January 1 of $57,000 and $43,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries $11,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60 % by McGill and 40 % by Smyth of $20,000 for McGill and (a) (1) Prepare a schedule showing the distribution of net income, assuming net income is $72,000. (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 Interest allowance Total salaries and interest Remaining income deficiency Total division of net income (2) Prepare a schedule showing the distribution of net income, assuming net income is $27,000. (If an amount reduces the account balance then enter with a negative sign preceding the number r parenthesis, e.g. -15,000, (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance $ Interest allowance Total salaries and interest Remaining income deficiency Total division of net income $ By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor