The capital account balances on January 1, 2014, for Christine and Dave were $140,000 and $210,000, respectively. During 2014, the Christine and Dave partnership had sales of $520,000, cost of goods sold of $182,000, and operating expenses of $46,000.

I want to make a schedule which clearly sets out the division of income or loss to the partners for 2014.

1. Since Christine will work only part time in the partnership, she will be allocated a salary allowance that is one half the salary allowance allocated to Dave. Dave's salary allowance will be 20% of sales.

2. Both partners will be given an interest allowance of 20% on their beginning-of-the-year capital account balances.

3. The remaining income and loss is to be divided 40% to Christine and 60% to Dave.