Homework- help urgent, DIVISION OF NET INCOME

Question 3 McGill and Smyth have capital balances on January 1 of $40,000 and $43,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $20,000 for McGill and $10,000 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. (a) (1) e.g. -15,000, (15,000).) Prepare a schedule showing the distribution of net income, assuming net income is $81,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, DIVISION OF NET INCOME McGill Smyth Total Salary allowance 20000 10000 $ 30000 Interest allowance 4000 4300 8300 Total salaries and interest 24000 14300 38300 Remaining income / deficiency Total division of net income 81000 (2)