P15-14 Division of Income LO 15-5 Champion Play Company is a partnership that sells sporting goods. The partnership agreement provides for so percent interest on invested capital, salaries of $14.000 to Lac and $28,000 to Dennis, and a bours for Loc. The so capital accounts were as follows: 8/1 Luc, Capital 15,000 1/1 4/ 1 7/1 50,000 5,000 Dennis, Capital 10,000 1/1 70,000 19/1 22,500 Required For each of the following independent situations, prepare an income distribution schedule 1. Interest is based on weighted average capital balances. The 5 percent bonus is calculated on net income after deducting the bonus. In 20X3, net income was $64,260. Any remainder is divided between Luc and Dennis in a 3:2 ratio, respectively. 2. Interest is based on ending capital balances after deducting salaries, which the partners normally withdraw during the year. The 8 percent bonus is calculated on net income after deducting the bonus and salaries. Net income was $108,700. Any remainder is divided equally. 3. Interest is based on beginning capital balances. The 12.5 percent bonus is calculated on net income after deducting the bonus. Net income was $76,950. Any remainder is divided between Luc and Dennis in a 4:2 ratio, respectively