a. The partnership of Carol and Jack began with the partners investing $6,000 and $4,000, respectively. At the end of the first year, the partnership earned net income of $8,200. Under each of the following independent situations, calculate how much of the $8,200 each is entitled to:

Situation 1: No agreement on how income was to be shared.

Situation 2: Carol and Jack share income based on the beginning-of-year investment ratio.

Situation 3: Salary allowance of $2,870 to Carol and $2,430 to Jack. Ten percent interest on beginning year’s investment. Remainder split equally.

b. In Situation 3 what would the earnings to each partner be if net income were $4,500?