Mike and Rachel form M&R Partnership. Mike invests $$42,000$ cash and Rachel invests $$62,000$ cash. The partners agree to share income as follows: Mike gets a salary allowance of $$5,000$ per year and Rachel gets a salary allowance of $$9,200$ per year; both get an annual interest allowance of $10\%$ on their initial investment; and any remaining balance is shared equally. Net income for the year is $$32,000.$ Also, Mike withdrew $$1,200$ cash from the partnership and Rachel withdrew $$2,200.$

Prepare a statement of partners' equity for the year ended December $31.$

Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses and withdrawals as negative values.