Christie and Jergens Formed a Partnership with Capital Contributions of $300,000

Multiple Choice

Christie and Jergens formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Christie to receive a $60,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Christie and Jergens's respective shares are:

A) $35,000; $100,000.
B) $90,000; $40,000.
C) $57,857; $77,143.
D) $67,500; $67,500.
E) $92,500; $42,500.