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:

(3) The partners agreed to share income and loss by providing annual salary allowances of $38,000 to Ries, $33,000 to Bax, and $45,000 to Thomas; granting 10% interest on the partners beginning capital investments; and sharing the remainder equally.