The partnership agreement for the law firm of Dewi, Cheetem, and Howe states that net income should be allocated in the following manner:

1. Salaries are to be paid as follows:

• Dewi, $50,000 per year

• Cheetem, $40,000 per year

• Howe, $20,000 per year

2. Each partner is to be paid a bonus of 25% of all revenues he or she generated.

During 20-1, each partner generated the following revenues:

• Dewi, $250,000

• Cheetem, $150,000

• Howe, $100,000

3. Each partner receives 10% interest on the beginning balance of his or her capital account. Beginning balances of the capital accounts are as follows:

• Dewi, $200,000

• Cheetem, $100,000

• Howe, $50,000

Net income for the year ended December 31, 20-1, was $240,000.

REQUIRED

Prepare the lower portion of the income statement showing the allocation of net income to Dewi, Cheetem, and Howe.