v Ever 33 41 a AaBbCcDdEt AaBbCcDc AaBbCcDdi Emphasis Heading 1 Normal DIVIDING INCOME OR LOSS - PART-2B B. Manilow and W. How have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income sharing agreement provides for (1) annual salaries of $14,000 for Manilow and $12,000 for How, (2) interest at 10% on beginning capital balances, and (3) remaining income or loss to be shared 70% by Manilow and 30% by How. a) Prepare a schedule showing the distribution of $55,000 net income and prepare required journal entry. M, Cap T H, Cap Total b) Prepare a schedule showing the distribution of $30,000 net income and prepare required journal entry. M, Cap H, Cap Total