Adair, Metz, and Bao have capital balances of $24,000, $36,000, and $60,000, respectively.
The partners share profits and losses as follows:

a. The first $50,000 is divided based on the partners’ capital balances.

b. The next $50,000 is based on services, shared equally by Adair and Bao. Metz does not receive a salary allowance.

c. The remainder is divided equally.
Requirements

1. Compute each partner’s share of the $112,000 net income for the year.
2. Journalize the closing entry to allocate net income for the year.