Jane Smith and Graham Bronson have a partnership agreement with the following provisions for sharing profit or loss:

$1.$ A salary allowance of $$39,600$ to Smith and $$50,800$ to Bronson

$2.$ An interest allowance of $5\%$ on capital balances at the beginning of the year

$3.$ The remainder to be divided between Smith and Bronson on a $2$:$3$ basis

The capital balances on January $1,2026,$ for Smith and Bronson were $$105,000$ and $$129,300,$ respectively. For the year ended December $31,2026,$ the Smith$/$Bronson Partnership had sales of $$435,200$; cost of goods sold of $$320,000$; operating expenses of $$166,400$; J$.$ Smith drawings of $$30,812$; G$.$ Bronson drawings of $$36,864.$

Required:

a$)$ Prepare an income statement for the Smith$/$Bronson Partnership for the year.

b$)$ Prepare a schedule to show how the loss will be allocated to the two partners.

c$)$ Prepare a statement of partners$$ equity for the year.