P 125 Bo and Diddley have decided to establish a partnership. Bo contributes $50,000 in cash; Diddley contributes $100,000 cash. They are evaluating two plans for a profit and loss sharing agreement: Plan A Bo to receive a salary of $15,000 per year, the balance to be divided between Bo and Diddley according to their opening capital balance ratios. Plan B Bo to receive a salary of $12,000 per year; Bo and Diddley to receive 8 per cent interest per year each on their opening capital balances, and the balance of profit or loss to be split equally. Required: 1. Calculate the division under each plan in the following schedule, assuming: (a) a profit of $60,000 per year, and (b) a loss of$30,000 per year.