McGill and Smyth have capital balances on January 1 of $55,000 and $45,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $21,000 for McGill and $13.000 for Smyth, (2) interest at 11% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth Part 1 (1) Your answer is incorrect. Prepare a schedule showing the distribution of net income, assuming net income is $77.000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, eg -15,000, (15,000)) Salary allowance Interest allowance Total salaries and interest Remaining Income/ deficiency Total division of net income DIVISION OF NET INCOME McGill Smyth Total (2) Prepare a schedule showing the distribution of net income, assuming net income is $20.000 (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, eg-15,000, (15,0001) Salary allowance Interest allowance Total salaries and interest Remaining income/ deficiency Total division of net income eTextbook and Media DIVISION OF NET INCOME McGill Smyth Total