E13-4 Allocating profits and losses to the partners [15-20 min] Bob Freeley and Jack Hart form a partnership, investing $25000 and $100000, respectively. Requirement Determine their shares of profit or loss for each of the following independent situations: a Loss is $130000 and the partners have no written partnership agreement on sharing loss. b Profit is $50000 and the partnership agreement states that the partners share profits and losses on the basis of their capital balances. c Profit is $140000. The first $84000 is shared on the basis of partner capital balances. The next $42000 is based on partner service, with Bob Freely getting 25% and Jack Hart 75%. The remainder is shared equally.