PROJECT I Norr and Caylor established a partnership on January 1, 2017. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000. For both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following procedure for sharing profits and losses: - 12% interest on the yearly beginning capital balance - $10 per hour of work that can be billed to the partnership's clients - the remainder divided in a 3:2 ratio The Articles of Partnership specified that each partner should withdraw no more than $1,000 per month, which is accounted as direct reduction of that partners capital balance. For 2017, the partnership's income was $70,000. Norr had 1,000 billable hours, and Caylor worked 1,400 billable hours. In 2018, the partnership's income was $24,000, and Norr and Caylor worked 800 and 1,200 billable hours respectively. Each partner withdrew $1,000 per month throughout 2017 and 2018.

Q#1: Determine the amount of net income allocated to each partner for 2017?

Q#2: Determine the balance in both capital accounts at the end of 2017?

Q#3: Determine the amount of net income allocated to each partner for 2018. (Round all calculations to the nearest whole dollar)?

Q#4: Determine the balance in both capital accounts at the end of 2018 to the nearest dollar?