The SRT partnership agreement specifies that partnership net income be allocated as follows in the following order:

Partner S Partner R Partner T

Salary allowance $20,000 $25,000 $15,000

Interest on avg. capital balance 10% 10% 10%

Remainder 30% 30% 40%

Average capital balances for the current year were $60,000 for S, $50,000 for R, and $40,000 for T.

Refer to the information given. Assuming no restrictions and current year net income of $45,000, what amount should be allocated to each partner?

Partner S Partner R Partner T

A) $17,000 $21,000 $7,000

B) ($9,000) ($9,000) ($12,000)

C) $13,500 $13,500 $18,000

D) $22,500 $22,500 $0