# 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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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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