Sally and Samantha have decided to form a partnership. They have agreed that Sally is to invest $195,000 and that Samantha is to invest $65,000. Sally is to devote one-half time to the business, and Samantha is to devote full time. The following plans for the division of income are being considered:

a. Equal division.

b. In the ratio of original investments.

c. In the ratio of time devoted to the business.

d. Interest of 5% on original investments and the remainder equally

e. Interest of 5% on original investments, salary allowances of $50,000 to Sally and $85,000 to Samantha, and the remainder equally

f. Plan (e), except that Samantha is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances

Instructions:

Determine the division of Net Income of $235,000.