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Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary...

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Accounting

Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows:

  1. Annual salary allowance to Stevens of $112,560.
  2. Interest of 7% on each partner's capital balance on January 1.
  3. Any remaining net income divided to Jack and Stevens, 1:2.

Jack and Stevens had $87,000 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $201,000.

Required:

How much net income should be distributed to Jack and Stevens? Jack: $ Stevens: $

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