PE 12-2B Dividing partnership net income John Prado and Ayana Nicks formed a partnership, dividing income as follows: 1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided equally. (Cont er 12 Accounting for Partnerships and Limited Liability Companies Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital bal- ances. Net income for the year was $30,000. How much net income should be distributed to Prado and Nicks? 2-3 p.561 PE 12-3A Romani