Sumner and Tayler formed a partnership on December 31, 2105. Sumner contributed $25,000 cash and accounts receivable with a fair market value of $1 1,000. Taylor's investment consisted of: cash, $5,000; inventory, $18,000; and supplies, $1,000 all at fair market values. Net income for 2016 and 2017 was 530,000 and $58,000, respectively. Required: Calculate and distribute the net income for each year, to each partner, assuming profits are divided on each of the following, totally independent basis (A) Based on the partners' failure to sign an agreement. (B) Based on a 1:3 ratio. (C) Based on the ratio of the partners' original investments. (D) The partners are allowed 12% of the original investments, salaries to Sumner of $14,000 and Taylor of $11,000, and the remainder to be divided equally. (E) Prepare the journal entry to record the allocation of the 2016 net income under alternative (D) above