Allocating partnership profits and losses; sequential years ceCHECK FIGURES: d$.$ Year $1$: Phillip: $$(86,000)$; Case: $$(14,000)$; d$.$ Year $2$: Phillip: $$39,000$; Case: $$111,000$; d$.$ Year$3$: Phillip: $$89,000$; Case: $$161,000$Phillip and Case are in the process of forming a partnership to import Belgian chocolates, to which Phillip will contribute one third time and Case full time. They have discussed the following alternative plans for sharing profit and losses.a$.$ In the ratio of their initial investments, which they have agreed will be $$160,000$ for Phillip and $$240,000$ for Case.b$.$ In proportion to the time devoted to the business.c$.$ A salary allowance of $$5,000$ per month to Case and the balance in accordance with their initial investment ratio.d$.$ A $$5,000$ per month salary allowance to Case, $15\%$ interest on their initial investments, and the balance equally.The partners expect the business to generate profit as follows: Year $1,$ $$70,000$ profit Year $2,$ $$70,000$Loss and Year $3,$ $$400,000$ profit.