a. The partnership of Sandy and Gary began with the partners investing $4,200 and $2,500, respectively. At the end of the first year, the partnership earned net income of $8,500. Under each of the following independent situations, calculate how much of the $8,500 each is entitled to:

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

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

Situation 3: Salary allowance of $2,840 to Sandy and $2,490 to Gary. 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 $4,600?