Kyle and Andy formed a partnership dividing income as follows: 1. Annual salary allowance to Kyle, $50,000 and Andy, $45,000. 2. Interest of 8% of each partners capital balance on January 1. 3. Any remaining net income divided equally. Kyle and Andy had $175,000 and $148,000, respectively, in their January 1 capital balances. Net income for the year was $110,000. How much income should be distributed to Andy?

a. $55,000 b. $51,420 c. $56,840 d. $58,580