Extracted text: v2.cengagenow.com Cengage CengageNOWv2 | Online teaching and learning resource from Cengage Learning Ch 12-3 Exercises and Problems eBook Calculator Print Item Dividing LLC Income Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $62,000 and $50,000 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:2. The two members withdrew amounts equal to their salary allowances. Revenues were $668,000 and expenses were $520,000, for a net income of $148,000. a. Determine the division of $148,000 net income for the year. Schedule of Division of Net Income Farley Clark Total Salary allowance 62,000,000 112,000 Remaining income 21,600 Net income8,6006400 148,000 14,400 36,000 64,400 b. Provide journal entries to close the (1) revenues and expenses and (2) drawing accounts for the two members. For a compound transaction, if an amount box does not require an entry, leave it blank. Revenues Martin Farley, Member Equity Ashley Clark, Member Equity Salary Expense Martin Farley, Drawing Ashley Clark, Drawing (2) c. If the net income were less than the sum of the salary allowances, how would income be divided between the two members of the LLC? If the net income of the LLC were less than the sum of the salary allowances, both members would still be credited with their salary allowances. The difference between the net income and total salary allowances Check My Work 2 more Check My Work uses remaining Previous Next Assignment Score: 33.33% All work saved Email Instructor Save and Exit Submit Assignment for Grading