Fred and Barney started a partnership. During Year 1, Fred invested $17,000 in the business and Barney invested $25,500. The partnership agreement called for each partner to receive an annual distribution equal to $8% of his capital contribution. Any further earnings were to be retained in the business and divided equally between the partners. The partnership reported net income of $38,000 during Year 1. How will the $38,000 of net income be split between Fred and Barney respectively? (Hint: Consider both the cash withdrawals and allocation of remaining income.) Fred Barney Multiple Choice $15,942 $15,260 $17,000 $21,000 $19,000 $19,000