1: In their partnership agreement, Justin, Sarah, and Betsy agreed that Justin should receive a salary allowance of $35,000 per year and that Sarah should receive a salary allowance of $30,000 per year. Any remainder is divided equally among the three partners. How much should each partner's capital change if the partnership generates:
(a) Net income of $95,000
(b) Net income of $47,000
(c) Net loss of $28,000
2: Larry, Mo, and Curly have agreed to allocate profits and losses as follow: 10 percent interest on beginning capital and the remainder allocated equally. The beginning capital amounts are Larry, $120,000; Mo, $60,000; and Curly, $80,000. How much should each partner's capital change if the partnership generates:
(a) Net income of $95,000
(b) Net income of $47,000
(c) Net loss of $28,000