McGill and Smyth have capital balances on January 1 of $53,000 and $34,000, respectively. The partnership income sharing agreement provides for 1 annual salaries of $16,000 for McGill and $17,000 for Smyth (2) interest at 10% on beginning capital balances, and 3 remaining income or loss to be shared 70% by McGill and 30% by Smyth.

• Prepare a schedule showing the distribution of net income, assuming net income is $66,000
• Prepare a schedule showing the distribution of net income, assuming net income is $27,000