James and Bill formed a partnership on 1 July 2016 to run a finance consultancy business by investing exist1 200 000 and exist900 000 respectively. Both partners work similar hours in the business. James is a professional with 20 years of related working experience. Bill has an undergraduate degree in finance and has worked for 4 years. They had not drawn up a partnership agreement officially and so are unsure how the profits of exist405 000 should be distributed to each partner. You have been asked to decide the most appropriate way to divide the profit, and a number of alternative scenarios are provided for you to consider: a. no suggestions have been made by the partners. b. the partners suggest distributing the profits in the ratio of the original capital investments. c. the partners suggest that James receives a salary of exist120 000 and Bill receives a salary of exist45 000, to reflect James' greater qualifications and expertise. Each partner is entitled to 6% interest on their original investment, and remaining profit is to be shared equally. Required: Calculate the amount of profit distribution to each partner under each scenario, (show all workings) Which scenario is most favorable to James and to Bill? Given the capital commitments and expertise of each partner, which scenario is the most appropriate for the partnership agreement? Briefly explain your choice