Response to the following problem:
Daja and Whitnee had capital balances of 140,000 and 160,000 respectively at the beginning of the current fiscal year. The articles of partnership provide for salary allowances of $25,000 and $35,000 respectively, an allowance of interest at 12% on the capital balances at the beginning of the year, with remaining net income divided equally. Net income for the current year was $120,000.
(a) Present the income division section of the income statement for the current year.
(b) Assuming that the net income had been $50,000 instead of 120,000, present the income division section of the income statement for the current year.