This statement is for questions 1 through 2. Tom, Cruise and Jerry formed a partnership in Year 1. The agreement agrees that Cruise will receive bonus that is calculated as 10% of the partnership income after the bonus. The partnership agreement also provides for annual salary allowances of $15,000 for Tom, $12,000 for Cruise and $13,000 for Jerry. The partners share profit equally and losses in a 2:1:1 ratio for Tom, Cruise and Jerry, respectively. The partnership had earnings of $88,000 for Year 2 before any allowance/distribution to partners.

1) Calculate the total distribution to Cruise (show your calculation including the calculation of Bonus)

2) Calculate the total distribution to Tom and Jerry (show your calculation of payment to each of these 2 partners)