Q1: McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for annual salaries of $22,000 for McGill and $12,000 for Smyth, interest at 10% on beginning capital balances, and, remaining income or loss to be shared 60% by McGill and 40% by Smyth. Requirement: (1) If the income was $50,000, what will be the distribution of income to each partner? (2) If the income was $36,000, what will be the distribution of income to each partner? (3) Journalize the allocation of net income in each of the situations above