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Norr and Caylor established a partnership on January 1, 2017. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000. Each partner's beginning capital balance was to equal that partner's initial investment.

The Articles of Partnership specify that Norr and Caylor will share profits and losses in the following way:
	Each partner is allocated 12% interest on the yearly beginning capital balance
	Each partner is allocated $10 per hour for each hour of billable work.
	40% of any remaining profit or loss is allocated to Norr and 60% is allocated to Caylor.
The Articles of Partnership also specify that each partner may withdraw $1,000 per month.
For 2017, the partnership's income was $25,000. Norr worked 800 billable hours, and Caylor worked 1,200 billable hours. In 2018, the partnership's income was $75,000. Norr and Caylor worked 1,400 and 1,600 billable hours respectively. Each partner withdrew $1,000 each month throughout 2017 and 2018.
Required:
Answer the following four questions. Round all calculations to the nearest whole dollar.
1.	Determine the amount of net income allocated to each partner for 2017. (2 points)
2.	Determine the balance in each partner's capital account at the end of 2017. (2 points)
3.	Determine the amount of net income allocated to each partner for 2018. (2 points)
4.	Determine the balance in each partner's capital account at the end of 2018. (2 points)

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