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Problem 1: Jackson and Campbell have capital balances of $100,000 and $300,000, respectively. Jackson devotes full time and Campbell devotes one-half time to the business. Determine the division of $150,000 of net income when there is no reference to division in the partnership agreement.
Option a. $75,000 and $75,000
Option b. $37,500 and $112,500
Option c. $100,000 and $50,000
Option d. $112,500 and $37,500
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