Andrew and Piter are paterners, carrying on a business as a partnership. The partnership agreement provides that Andrew is to be paid an annual salary of $40,000. The balance is to be distributed equally between Andrew and Piter. The partnership agreement also provides that the partners are to share the losses equally in the case of losses. The partnerships assessable income for the income year is $100,000. Deductible expenses are $120,000.

Required: What are the tax consequences for the partnership and each partner?