Question 1 Brewer and Tony have a partnership agreement which includes the following provisions regardi sharing net income or net loss 1. A salary allowance of $30,000 to Brewer and $15,000 to Tony. 2. An interest allowance of 10% on capital balances at the beginning of the year. 3. The remainder to be divided 60% to Brewer and 40% to Tony. The capital balances on January 1, 2007, for Brewer and Tony were $80,000 and $100,000, respectively of $190,000, and operating expenses of $60,000. Instructions During 2007, the Brewer and Tony Merchandising Partnership had sales of $330,000, cost of goods sold Prepare an income statement for the Brewer and Tony Merchandising Partnership for the year ended December 31, 2007. As a part of the income statement, include a Division of Net income to each of the partners. a) [ 10 marks]