On January 1, 2017, the capital balances in Hollings worth Company are Lois Holly $26,000 and Jim Worth $24,000. In 2017 the partnership reports net income of $30,000. The income ratio provides for salary allowances of $12,000 for Holly and $10,000 to Worth and the remainder to be shared equally. Neither partner had any drawings in 2017, Instructions
(1) Prepare a schedule showing the distribution of net income in 2017.