Farmer and Taylor Formed a Partnership with Capital Contributions of $200,000

Multiple Choice

Farmer and Taylor formed a partnership with capital contributions of $200,000 and $250,000,respectively.Their partnership agreement calls for Farmer to receive a $70,000 per year salary.The remaining income or loss is to be divided equally.If the net income for the current year is $135,000,then Farmer and Taylor's respective shares are:

A) $67,500;$67,500.
B) $130,000;$5,000.
C) $106,140;$28,860.
D) $90,000;$45,000.
E) $102,500;$32,500.