Craig and Smith Formed a Partnership on December 31,2020

Craig and Smith formed a partnership on December 31,2020.Craig contributed $60,000 cash.Justin's investment consisted of cash,$8,000; inventory,$24,000; and supplies,$8,000-all at fair market values.Profit for 2020 and 2021 was $75,000 and $85,000,respectively.Calculate the allocation of profit for 2020 and 2021,assuming profits are divided as follows: (A)The partners have no agreement.(B)Based on a 1:3 ratio.(C)Based on the ratio of the partners' original investments.(D)Interest allowances of 10% on their original investments,salary allowances to Craig of $14,000 and Simpson of $11,000,and the remainder to be divided equally.