On January 1, FRED and GEMMO formed a partnership by contributing cash of 405,000 and 270,000, respectively. On February 1. Fred contributed an additional 135,000. On May 1, Gemmo contributed...

On January 1, FRED and GEMMO formed a partnership by contributing cash of 405,000 and 270,000, respectively. On February 1. Fred contributed an additional 135,000. On May 1, Gemmo contributed machinery with a fair market value of 90,000 and a net book value of 75,000 when contributed. On November 1, Gemmo contributed an additional 45,000 cash to the partnership. The partnership reported a net income of 257,400 for the year and the profit or loss agreement are as follows: Interest at 6% is allowed on average capital balances; Salaries if 2,700 per month to each partner; Bonus to Fred of 10% of net income after interest, salaries and bonus; and Balance to be divided in the ratio of 6:4 to Fred and Gemmo, respectively. Required: Prepare a schedule for the division of net profit for 2016 with supporting computations when appropriate.