McGill and Smyth have capital balances on January 1 of $44,000 and $47,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $15,000 for McGill and $12,000 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. (1) Prepare a schedule showing the distribution of net income, assuming net income is $65,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, eg. -15,000, (15,000)) DIVISION OF NET INCOME Salary allowance Interest allowance McGill S Smyth Total