The partnership agreement of Jones, King, and Lane provides for the annual allocation of the business's profit or loss in the following sequence:

• Jones, the managing partner, receives a bonus equal to 20 percent of the businesss profit.
• Each partner receives 11 percent interest on average capital investment.
• Any residual profit or loss is divided equally.

The average capital investments for 2021 were as follows:

Jones	$	195,000
King		390,000
Lane		585,000

The partnership earned $90,000 net income for 2021. Prepare a schedule showing how the 2021 net income should be allocated to the partners. (Loss amounts should be indicated with a minus sign.)

Jones King Lane Total Net income $ 90,000 Bonus 0 Interest 0 $ 90,000 Remainder to allocate 0 Total allocation $ 0 $ 0 0 $ 90,000