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Problem - Lia Chen and Martin Monroe formed a partnership, dividing income as follows:
1. Annual salary allowance to Chen of $35,000.
2. Interest of 4% on each partner's capital balance on January 1.
3. Any remaining net income divided to Chen and Monroe, 2:1.
Chen and Monroe had $90,000 and $140,000, respectively, in their January 1 capital balances. Net income for the year was $70,000.
How much net income should be distributed to Chen and Monroe?
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