The A & B partnership has the following plan for the distribution of partnership net income (loss): (Q 1, 2)

AB

Salaries$80,000$100,000

Bonus on net income6%12%

Interest on average capital balance7%7%

Reminder (if positive)60%40%

Reminder (if negative)50%50%

Calculate the distribution of partnership net income (loss) for each independent situation below (for each situation, assume the average capital balance of A is $280,000 and of B is $480,000).

a) Partnership net loss is $80,000.