Evans, Furr, and Good formed the EF\&G partnership. Evans invested \(\$ 20,000\); Furr, \(\$ 40,000\); and Good, \(\$ 60,000\). Evans will manage the store; Furr will work in the store three-quarters of the time; and Good will not work.

Requirements 

1. Compute the partners' shares of profits and losses under each of the following plans:

a. Net loss is \(\$ 40,000\), and the partnership agreement allocates \(45 \%\) of profits to Evans, \(35 \%\) to Furr, and \(20 \%\) to Good. The agreement does not discuss the sharing of losses.

b. Net income for the year ended September 30,2009 , is \(\$ 90,000\). The first \(\$ 30,000\) is allocated on the basis of partner capital balances. The next \(\$ 30,000\) is based on service, with \(\$ 20,000\) going to Evans and \(\$ 10,000\) going to Furr. Any remainder is shared equally. 

2. Revenues for the year ended September 30, 2009, were \(\$ 190,000\), and expenses were \(\$ 100,000\). Under plan (b) above, prepare the partnership income statement for the year.