Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $$62,000$ and $$50,000$ to each member, respectively. In addition, the operating agreement specified an income$-$sharing ratio of $3$:$5.$ The two members withdrew amounts equal to their salary allowances. Revenues were $$668,000$ and expenses were $$520,000,$ for a net income of $$148,000.$

Question Content Area

a$.$ Determine the division of $$148,000$ net income for the year.

Schedule of Division of Net Income

Line Item Description Farley Clark Total

Salary allowance $Salary allowance

$62,000$

$Salary allowance

$50,000$

$Salary allowance

$112,000$

Remaining income Remaining income

Remaining income

Remaining income

Net income $Net income

$Net income

$Net income