Levin and Tom have agreed to distribute partnership net income according to the following plan:

Levin Tom

Interest on average capital balances 10% 6%

Bonus on net income before the bonus

on average capital balances 5%

Salaries $20,000 $70,000

Residual (if positive) 60% 40%

Residual (if negative) 50% 50%

Additional information for 20x9 follows:

1. Levin began the year with a capital balance of $75,000.
2. Tom began the year with a capital balance of $100,000.
3. On March 1, Levin invested an additonal $45,000 into the partnership.

A. What amounts were distributed to each partner with no restrictions if net income for Levin-Tom partnership for 20x9 was $125,000.

B. What amounts were distributed to each partner with no restrictions if net income for Levin-Tom partnership for 20x9 was $100,000.

C. What amounts were distributed to each partner to the extend possible if net income for Levin-Tom partnership for 20x9 was $100,000.