On June 20, 20-, the partnership of Wang, Chang and Lang completed a fiscal year with a net income of $45, 150.60. The partnership agreement specifies the net income or net loss is to be allocated according to the following terms:

The following salaries are allowed: Wang $19, 000, Chang $8, 000 and Lang nil.

Interest is allowed on capital account balances at 8.5%. The partners capital account balances are: Wang $49, 000, Chang $120, 000, Lang $210, 000.

The remaining net income or net loss is to be divided as follows: Wang 25%, Chang 25%, Lang 50%.