McGill and Smyth have capital balances on January 1 of $52,000 and $45,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $15,000 for McGill and $11,000 for Smyth, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth. (a) Your answer is partially correct (1) Prepare a schedule showing the distribution of net income, assuming net income is $80,000. (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 Smyth McGIII Total Salary allowance 1600 11000 $ 20000 Interest allowance 5200 OTO Total salaries and interest 20200 700 Remaining income! IN Prepare a schedule showing the distribution of net income, assuming net income is $80,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000. (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 15000 $ 11000 $ 26000 Interest allowance 5200 4500 9700 Total salaries and interest 20200 15500 35700 Remaining income deficiency 14800 Total division of net income $ 26580 17720 $ -44300 (2) Prepare a schedule showing the distribution of net income, assuming net income is $29,000. (IF an amount reduces the account balance then enter with a negative in preceding the number ornarenthesis -15 sans Prepare a schedule showing the distribution of net income, assuming net income is $29,000. (If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e.g. -15,000. (15,000).) DIVISION OF NET INCOME McGill Smyth Total Salary allowance 15000 11000 $ 26000 Interest allowance 5200 4500 9700 Total salaries and interest 20200 15500 35700 Remaining income deficiency 5700 Total division of net income -4020 $ 2680 6700 e Textbook and Media Save for Later Attempts: 1 of 3 used Submit