Meghan Kornett and James Higgins formed a partnership on January 1, 20--. Kornett contributed $70,000 and Higgins contributed $40,000. During the year, Kornett contributed an additional $20,000. The partnership agreement states that Kornett is to receive $50,000 and Higgins is to receive $40,000 as a salary allowance. Any remaining net income is to be divided as follows: Kornett 65%, Higgins 35%. For the fiscal year ending December 31, 20--, the partnership earned $140,000 in net income. The partners withdrew only the salary portion of their compensation during the first year of operation. Required: a. Prepare the lower portion of the income statement showing the allocation of net income between Kornett and Higgins for the year. Kornett and Higgins Income Statement (Partial) For the Year Ended December 31, 20-- Net income Allocation of net income: Kornett Higgins Total Salary allowances $ Remaining income $ b. Prepare a statement of partners' equity, showing each individual partner's equity for the year. If an amount is zero, enter om Kornett and Higgins Statement of Partners' Equity For the Year Ended December 31, 20-- Kornett Higgins Total Capital, January 1, 20- HER! El ULNlll (Partial) For the Year Ended December 31, 20-- Net income Allocation of net income: Kornett Higgins Total Salary allowances S Remaining income b. Prepare a statement of partners' equity, showing each individual partner's equity for the year. If an amount is zero, enter "0". Kornett and Higgins Statement of Partners' Equity For the Year Ended December 31, 20-- Kornett Higgins Total Capital, January 1, 20-- S Additional investments during the year S Net income for the year Withdrawals Capital, December 31, 20-- $