Problem V: The following information is available concerning the agreement for income/loss) distribution of the Earth, Wind & Fire partnership for 2030: Income to be awarded based on labor: Earth, $10,000; Wind $20,000; Fire, $25,000. Interest is to be awarded based on a 10% return on capital. Earth's capital is $100,000; Wind's capital is $40,000; and Fire's capital is $50,000. The remainder is to be allocated on 2:1:1 basis. REQUIRED: 1) Prepare a schedule of income distribution if 2020 net income was $170,000. 2) Prepare a schedule of "income" distribution if there was a LOSS of ($14,000) in 2020. Problem VI: The partnership of DeGrom. Syndergaard, and Peterson share all gains and losses 2:1:1; and have respective capital balances of $130,000, $100,000, and $70,000. The firm decides to expand their partnership by deciding to admit Lugo who agrees to contribute $100,000 for a 20% equity stake. Required: Prepare the journal entry to record Lugo's admission into the partnership