Watts and Lyon are forming a partnership. Watts invests $$42,000$ and Lyon invests $$63,000.$ The partners agree that Watts will work

one$-$third of the total time devoted to the partnership and Lyon will work two$-$thirds. They have discussed the following alternative

plans for sharing income and loss: $($a$)$ in the ratio of their initial capital investments; $($b$)$ in proportion tonthe time devoted to the

business; $($c$)$ a salary allowance of $$72,000$ per year to Lyon and the remaining balance in accordance with the ratio of their initial

capital investments; or $($c$)$ a salary allowance of $$72,000$ per year to Lyon, $10\%$ interest on their initial capital investments, and the

remaining balance shared equally. The partners expect the business to perform as follows: Year $1,$ $$36,000$ net loss; Year $2,$ $$90,000$

net income; and Year $3,$ $$150,000$ net income.