P15-12 Division of Income LO 15-5 C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 20X1 were as follows: C. Eastwood, Capital 9/1 8,000 1/1 30.000 5/1 6.000 A. North. Capital 3/1 9.000 1/1 40.000 5.000 4.000 M. West, Capital 8/1 12.000 1/1 50,000 4/1 7.000 6/1 3.000 1 Required 2 3 For each of the following independent income-sharing agreements, prepare an income distribution schedule. 4 5 6 7 8. 9 0 1 2 3 a. Salaries are $15,000 to Eastwood, $20,000 to North, and $15,000 to West Eastwood receives a bonus of 5 percent of net income after deducting his bonus. Interest is 10 percent of ending capital balances. Eastwood, North, and West divide any remainder in a 3:3:4 ratio, respectively. Net income was $75.960 b. Interest is 10 percent of weighted average capital balances. Salaries are $24.000 to Eastwood. $21,000 to North, and $25.000 to West. North receives a bonus of 10 percent of net income after deducting the bonus and her salary: Any remainder is divided equally. Net income was $68,080. West receives a bonus of 20 percent of net income after deducting the bonus and the salaries. Salaries are $21,000 to Eastwood, $18,000 to North, and $15,000 to West Interest is 10 percent of beginning capital balances. Eastwood, North, and West divide any remainder in an 8:7:5 ratio, respectively. Net income was $92.940