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Problem - John Prado and Ayana Nicks formed a partnership, dividing income as follows:
1. Annual salary allowance to Prado, $10,000 and Nicks, $28,000.
2. Interest of 5% on each partner's capital balance on January 1.
3. Any remaining net income divided equally.
Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital balances. Net income for the year was $30,000.
How much net income should be distributed to Prado and Nicks?
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