FROTO, BILBO AND GANDOFF ARE THE 3 PARTNERS IN THE LAW FIRM OF FBG. INFORMATION ABOUT THE PARTNERSHIP IS AS FOLLOWS:

FROTO: 50% PARTNER, CAPITAL ACCOUNT JANUARY 1, 2015 $50,000 RECEIVES SALARY OF $40,000

BILBO: 20% PARTNER, CAPITAL ACCOUNT JANUARY 1, 2015 $70,000 RECEIVES SALARY OF $20,000

GANDOFF: 30% PARTNER, CAPITAL ACCOUNT JANUARY 1, 2015 $111,000 RECEIVES NO SALARY

The partnership pays interest of 12% on January 1, capital account. In addition to her salary, Froto takes $500 out of her capital account monthly. Gandoff takes $1000 out of his capital account each month.

Income before partner salaries or interest on capital is as follows:

2015 $225,000

2016 $400,000

2017 $333,000

REQUIRED: FOR 2015, 2016 AND 2017 DETERMINE

THE AMOUNT OF THE PARTNERSHIP INCOME ALLOCATED TO EACH PARTNER

THE CAPITAL ACCOUNT BALANCE FOR EACH PARTNER ON DECEMBER 31, 2015, 2016 AND 2017