Answer:
$216,570; $89,430
Explanation:
Jack:
Interest amount = 7% × $96,000
= $6,720
Bernard:
Interest amount = 7% × $87,000
= $6,090
Overall profit = Net income - salary - interest amount
= $303,000 - $169,680 - ( $6,720 + $6,090)
= $303,000 - $169,680 - $12,810
= $120,510
Profit is divided in a 1:2 ratio among Jack and Bernard:
Jack's profit = $120,510 × (1/3)
= $40,170
Bernard's profit = $120,510 × (2/3)
= $80,340
Net income should be distributed to Jack:
= salary + Interest + profit
= $169,680 + $6,720 + $40,170
= $216,570
Net income should be distributed to Bernard:
= Interest + profit
= $6,090 +$80,340
= $89,430
