Exercise 12-4 (Part Level Submission) McGill and Smyth have capital balances on January 1 of $51,000 and $41,000, respectively. The partnership income- sharing agreement provides for (1) annual salaries of $15,000 for McGill and $16,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 3096 by Smyth. (1) Prepare a schedule showing the distribution of net income, assuming net income is $70,000. (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 n Salary allowance Interest allowance Total salaries and interest Remaining income/ deficiency ed Total division of net Income Total division of net income (2) Prepare a schedule showing the distribution of net income, assuming net income is $21,000. (Ifan 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 Smyth Total McGill Salary allowance Interest allowance Total salaries and interest Remaining income / deficiency Total division of net income Atterepts: 0 of 5 used The parts of this question must be completed in order. This part will be available when you complete the part above. ved