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$)$

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Correct Answer

$(1)$

Prepare a schedule showing the distribution of net income, assuming net income is $$80,000.($If an amount reduces the account balance then enter with a negative sign preceding the number or parenthesis, e$.$g$.-15,000,(15,000).)$