Use the Dynamic Exhibit to answer the following questions. 1. True or False. When net income is $240,000, each partner's capital balance increases. a. True b. False 2. True or False. When net income is $20,000, each partner's capital balance increases. a. True b. False 3. True or False. When there is a net loss, each partner's capital balance decreases a. True b. False The 4. When net income is $20,000, how is income divided? a. $10,000 to Prince, $10,000 to Bernard b. $25,150 to Prince, ($5,150) to Bernard c. $104,850 to Prince, $135,150 to Bernard d. $25,000 to Prince, ($5,000) to Bernard