On February 1, 2019, George, Hamm, and Ishmael began a partnership in which George and Ishmael each contributed cash of 525.000; and Hamm contributed property with a fair value of 550,000 and a tax basis 540.000. Hamm receives a 5% bonus of partnership income. George and Ishmael receive salaries of 510.000 each. The partnership agreement of George, Hamm, and Ishmael provides that all partners receive 5% interest on capital, and that profits and losses of the remaining income be distributed to George, Hamm, and Ishmael by a 1:3:1 ratio.
Prepare a schedule to distribute 425,000 of partnership net income to the partners.
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