Stan and Getz formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Stan to receive a $60,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Stan and Getz's respective shares are: $67, 500; $67, 500. $92, 500; $42, 500. $57, 857; $77, 143. $90,000; $40,000. $35,000; $100,000. When a partnership is liquidated: Noncash assets are distributed to partners. Any gain or loss on liquidation is allocated to the partner with the highest capital account balance. Liabilities are paid or settled. Any remaining cash is distributed to the partners equally. The business may continue to operate. In a partnership agreement, if the partners agreed to an interest allowance of 10% annually on each partner's investment, the interest allowance: Is ignored when earnings are not sufficient to pay interest. Can make up for unequal capital contributions. Is an expense of the business. Must be paid because the partnership contract has unlimited life. Legally becomes a liability of the general partner. A company had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5, 625 in the current period. The ending balance in retained earnings equals: $108, 625. $(12, 625). $11, 375. $43, 375. $(11, 375)