P12-4B Charles Lake. Liz Wood, and Hal Parks have formed a partnership. Lake invested $15.000. Wood $18,000, and Parks $27.000. Lake will manage the store, Wood will work in the store half-time, and Parks will not work in the business. Required 1. Compute the partners' shares of profits and losses under each of the following plans:

a. Net loss is $42.900, and the articles of partnership do not specify how profits and losses are shared.

b. Net loss is $60,000, and the partnership agreement allocates 40% of profits to Lake. 25% to Wood, and 35% to Parks. The agreement does not discuss the sharing of losses.

c. Net income is 592,000. The first $40.000 is allocated on the basis of salaries, with Lake receiving $28.000 and Wood receiving $12,000. The remainder is allocated on the basis of partner capital contributions.

d. Net income for the year ended January 31, 20X4. is $210,000. The first $75,000 is allocated on the basis of partner capital contributions, and the next $36.000 is based on service, with Lake receiving $28,000 and Wood receiving $8,000. Any remainder is shared equally. 2. Revenues for the year ended January 31, 20X4. were $870,000. and expenses were $660,000. Under plan (d), prepare the partnership income statement for the year.