January 1 of $52,000 and $45,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $15,000 for McGill and $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. (a) (1) Prepare a schedule showing the distribution of net income, assuming net income is $80,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.s. -15,000. (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 15000 $ 11000 26000 Interest allowance 5200 4500 9700 Total salaries and interest 20200 15500 42300 Remaining income / deficiency 37700 Total division of net income $ $ (2) 2) Prepare a schedule showing the distribution of net income, assuming net income is $29.000. (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 $ $