Seth and Alain have a partnership to which they each initially contributed $20,000. In its first year of operations, the partnership had a net loss of $9,000, before any partnership allocations. The partnership agreement specifies the following:

• Seth receives an annual salary of $15,000, and Alain receives an annual salary of $5,000.
• Neither partner received their salary in cash and neither partner had any withdrawals in the year.
• Remaining profit or loss is split 35% for Seth and 65% for Alain.

The partnership reports using ASPE. Which of the following statements regarding the allocation of net loss for the year is true?

Question 4 options:

a)	Seth is allocated profit of $500, and Alain is allocated a loss of $9,500.

b)	Seth is allocated a loss of $3,150, and Alain is allocated a loss of $5,850.

c)	Seth is allocated profit of $11,150, and Alain is allocated a loss of $2,150.

d)	Seth is allocated profit of $4,850, and Alain is allocated a loss of $13,850.