On Jan. 1, 2006, the Garcia, Pitular and Alfonso Partnership was formed with initial investments by the partners as follows: Garcia Pitular Alfonso P2,000,000 1,000,000 1,000,000 According to the partnership agreement, profit or loss is to be divided among the partners as follows: 1. Salaries of P120,000 for Garcia, P60,000 for Pitular and P60,000 for Alfonso. 2. Interest at 5% on the original capital balances. 3. The remainder to be divided among Garcia, Pitular, and Alfonso in a ratio of 4:1:1, respectively. The partnership reported profit of P350,000 for the year ended Dec. 31, 2006. Required: Determine the partners' share in the profit under each of the following independent situations: 1. Partner's salaries and interest on capital balances should be fully allocated and any deficiency between these allocations and profit is to be divided among Garcia, Pitular, and Alfonso in the ratio 4:1:1, respectively. 2. Partner's salaries and interest on capital balances should be made only to the extent that the profit can provide.