The partnership agreement of Ahmed and Ali has the following provisions:

1 - Partners are to earn 10% interest on their average capital balances

2 - Ali is to earn a 5% bonus on any net income above 40,000

3 - Ahmed and Ali are to earn salaries of 25,000 and 20,000 respectively

4 - Any remaining income or loss is to be divided using a 4:2 ratio

Ahmed's average capital balance is 130,000 and Ali's is 30,000

Net income for the year is 60,000

Required:

1 - Provide the amount of net income left to divide AFTER Step 1 (allocated interest on capital balances)

2 - What is the amount of the bonus to be paid to Ali? (If any)

3 - What is the total amount of net income allocated to Ahmed?

4 - What is the total amount of net income allocated to Ali?