Norr and Caylor established a partnership on January 1, 2018. Norr invested cash of $100,000 and Caylor invested $30,000 in Cash and equipment with a book value of $40,000 and fair value of $50,000. for both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following procedure for sharing profits and losses: -12% interest on the yearly beginning capital balance -$10 per hours of work that can be billed to the partnership's clients -the remainder divided in a 3:2 ration The Articless of partnership specified that each partner should withdraw no more than $1,000 per month or $12,000 per year. For 2018, the partnership's income was $70,000. Norr had 1,000 billable hours, and Caylor worked 1,400 billable hours. Each partner withdrew $1,000 per month throughout 2018 amounting to $12,000 per year.

1) Determine the amount of net income allocated to each partner for 2018

. 2) Determine the balance in both capital accounts at the end of 2018.