Kimble, Sykes, and Gerard open an accounting practice on January $1,2022,$ in Chicago, Illinois, to be operated as a partnership. Kimble and Sykes will serve as the senior partners because of their years of experience. To establish the business, Kimble, Sykes, and Gerard contribute cash and other properties valued at $$243,000,$$$197,500,$ and $$109,500,$ respectively. An articles of partnership agreement is drawn up stipulating the following:

Personal drawings are allowed annually up to an amount equal to $10$ percent of the partner's beginning capital balance for the year.

Profits and losses are allocated according to the following plan:

Each partner receives an annual salary allowance of $$55$ per billable hours worked.

Interest is credited to the partners' capital accounts at the rate of $12$ percent of the beginning capital balance for the year.

Kimble and Sykes are eligible for an annual bonus of $10$ percent of net income after subtracting the bonus, salary allowance, and interest. The agreement also states that there will be no bonus if there is a net loss or if salary and interest result in a negative remainder of net income to be distributed.

Any remaining partnership profit or loss is to be divided evenly among all partners.

On January $1,2023,$ the partners admit Nichols to the partnership. Nichols contributes cash directly to the business in an amount equal to a $25$ percent interest in the book value of the partnership property subsequent to this contribution. The partnership profit and loss sharing agreement is not altered upon Nichols's entrance into the firm; the general provisions continue to be applicable.

The billable hours for the partners during the first three years of operation follow:

$\backslash$table$[[,2022,2023,2024],[$Kimble$,2,540,1,800,1,880],[$Sykes$,2,280,1,500,1,620],[$Gerard$,2,140,1,380,1,310],[$Nichols$,0,1,560,1,550]]$

The partnership reports net income $($loss$)$ for $2022$ through $2024$ as follows:

$\backslash$table$[[2022,$$$303,000$