On January 1, 2019, A, B, and C began a partnership.

A contributed $50,000 of cash, B contributed $50,000 of cash, and C contributed property with a fair value of $50,000 and a basis of $40,000.

1. Based on the above information, what are the partner's beginning balances in the partnership?
2. The partnership generated $200,000 of income this year. A receives a 5% bonus of partnership income.B and C receive salaries of 10,000 each.The partnership agreement provides that all partners receive 5% interest on their beginning capital balances.Profits and losses of the remaining income are shared 20% A, 30% B, 50% C. Fill in the schedule below to distribute the $200,000 of income to the partners.

A B C

Net income. 200,000

Salary

interest on capital

Balance NI

share in profit

3.Make the journal entry necessary at the end to distribute the income to the partners.