Reese and Cravens are partners. Their partnership agreement provides that, in dividing profits, each is to be allocated interest at $10$ percent of her beginning capital balance. The balance of net income or loss after the interest allowances is to be split in the ratio of $70$:$30$ to Reese and Cravens, respectively. The beginning capital balances were Reese, $$111,000,$ and Cravens, $$15,000$ Net income for the year was $$231,000.$

Required:

Compute the amount of net income to be allocated to each partner.

$\backslash$table$[[,$Reese,Cravens,Total$],[$Net income$],[$Salary allowances$],[$Interest allowances,,$11,100,,1,500,,],[$Total salaries and interest,$$,11,100,$$$,1,500,$$$,12,600],[$Balance of income,,,,,,$(12,600)$