Guenther and Firmin, both of whom are CPAs, form a partnership, with Guenther investing $100,000 and Firmin, $80,000. They agree to share net income as follows:

1. Salary allowances of $80,000 to Guenther and $50,000 to Firmin.

2. Interest allowances at 15% of beginning capital account balances.

3. Any partnership earnings in excess of the amount required to cover the interest and salary allowances to be divided 60% to Guenther and 40% to Firmin.

The partnership net income for the first year of operations amounted to $247,000 before interest and salary allowances. Show how this $247,000 should be divided between the two partners. Use a three-column schedule.List on separate lines the amounts of interest, salaries, and the residual amount divided.