In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the company name T&L Chocolates. Thomas contributed P580,000 in cash to the business. Lopez contributed the building and equipment, valued at P480,000 and P230,000, respectively. The partnership had an income of P675,000 during 2013 but was less successful during 2014, when income was only P580,000. d. The partners agreed to share income by allowing interest of 12 percent on their original investments and dividing the remainder equally. DISTRIBUTION OF INCOME BASED ON INTEREST ON INVESTMENTS AND REMAINDER SHARED EQUALLY 2013 Income of Partner Income Distributed 675,000.00 Total Income for Distribution Distribution of Interest: George Lopez (21) Edi Thomas (22) (23) Remaining Income After Interest (24) Equal distribution of remaining income: George Lopez (25) Edi Thomas (26) (27) Remaining income Income of Partners (29) (30) Income of Partner (28) 675,000.00 Income Distributed 580,000.00 2014 Total Income for Distribution Distribution of Interest: George Lopez (31) Edi Thomas (32) (33) Remaining Income After Interest (34) Equal distribution of remaining income: George Lopez (35) Edi Thomas (36) (37) Remaining income (38) Income of Partners (39) (40) 580,000.00 P e. The partners agreed to share income by allowing salaries of P83,000 for Thomas and P60,000 for Lopez, and dividing the remainder by 60 percent for Thomas and 40% for Lopez. DISTRIBUTION OF INCOME BASED ON AGREED AMOUNT OF SALARY PER PARTNER WITH THE REMAINDER SHARED ON SEPCIFIC PERCENTAGES. 2013 Income of Partner Income Distributed Total Income for Distribution Distribution of Salaries: 675,000.00 George Lopez (41) Edi Thomas (42) (45) Remaining Income After Salaries Distribution of remaining income: George Lopez Edi Thomas Remaining income Income of Partners 2014 (46) (49) (50) Income of Partner Total Income for Distribution Distribution of Salaries: George Lopez (51) Edi Thomas (52) Remaining Income After Salaries Distribution of remaining income: George Lopez (55) (56) Edi Thomas Remaining income Income of Partners (59) (60) (43) (44) (47) P 675,000.00 Income Distributed 580,000.00 (53) (54) (57) (58) $80,000.00