The partnership agreement between Maria and Magdalena included a distribution of profits using a $60\%/40\%$ agreement. However, no mention in the agreement was made regarding distribution of losses.

In the absence of an agreement on the losses, how will Maria and Magdalena allocate the loss incurred for $2022?$

Group of answer choices

based on capital balances

equally

same percentage as profit distribution

no allocation will be made since nothing was agreed upon