Derek and Kent Are Partners

Essay

Derek and Kent are partners. At the beginning of the current year, Derek's capital account is
$30,000, while Kent's is $50,000. The partners decided to allocate income with 10% interest on capital balances at the beginning of the period and divide the balance equally. Net income for the current year, 2015, is $80,000. Each partner withdrew $15,000 for personal use during the year. Determine the amount of income that each partner will be allocated.