Acme, Mackey, and Baker have capital balances of $$18,000,$$$27,000,$ and $$45,000,$ respectively. The partners share profits and losses as follows:

a$.$ The first $$40,000$ is divided based on the partners' capital balances.

b$.$ The next $$40,000$ is based on service, shared equally by Acme and Baker. Mackey does not receive a salary allowance.

c$.$ The remainder is divided equally.

Read the requirements.

Net income $($loss$)$

Capital allocation:

Acme

Mackey

Baker

Salary allowance:

Acme

Mackey

Baker

Total salary and capital allocation

Net income $($loss$)$ remaining for allocation

Remainder shared equally:

Acme

Mackey

Baker

Total allocation

Net income $($loss$)$ remaining for allocation

Net income $($loss$)$ allocated to the partners

Requirements

Compute each partner's share of the $$101,000$ net income for the year.

Journalize the closing entry to allocate net income for the year.