Kara Ries, Tammy Bax, and Joe Thomas invested $42,000, $58,000, and $66,000, respectively, in a partnership. During its first calendar year, the firm earned $400,500. Prepare the entry to close the firms Income Summary account as of its December 31 year-end and to allocate the $400,500 net income to the partners under each of the following separate assumptions:

Required: (1) The partners have no agreement on the method of sharing income and loss.