Pederson and Walden have formed a partnership. During their first year of operations, the partnership earned $$130,000.$ Their profit$-$and$-$loss$-$sharing agreement states that, first, each partner will receive $25\%$ of their capital balances. The second level is based on services, with $$10,000$ to Pederson and $$16,000$ to Walden. The remainder then will be shared $4$:$1$ between Pederson and Walden, respectively.

Read the requirements.

Net income $($loss$)$

Capital allocation:

Pederson

Walden

Salary allowance:

Pederson

Walden

Total salary and capital allocation

Net income $($loss$)$ remaining for allocation

Share of remainder:

Pederson

Walden

Total allocation

Net income $($loss$)$ remaining for allocation

Net income $($loss$)$ allocated to the partners