Payton and Walter have formed a partnership. During their first year of operations, the partnership earned $130,000.

Their-profit-and-loss-sharing agreement states that, first, each partner will receive 25% of their capital balances. The second level is based on services, with $14,000 to Payton and $16,000 to Walter.

The remainder then will be shared 4:1 between Payton and Walter, respectively.

Requirement 1. Calculate the amount of income each partner will receive under their profit-and-loss-sharing agreement assuming

Payton's

capital balance is

$75,000

and

Walter's

capital balance is

$75,000.

(Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.)

		Payton	Walter	Total
	Net income (loss)
	Capital allocation:
	Payton
	Walter
	Salary allowance:
	Payton
	Walter
	Total salary and capital allocation
	Net income (loss) remaining for allocation
	Share of remainder:
	Payton
	Walter
	Total allocation
	Net income (loss) remaining for allocation
	Net income (loss) allocated to the partners