Intermediate Accounting: E12-16 Bob Fultz and Jack Hardie form a partnership

Intermediate Accounting
E12-16
Bob Fultz and Jack Hardie form a partnership, investing $40,000 and $80,000, respectively. Determine their shares of net income or net loss for each of the following situations: 
Computing partners’ shares of net income and net loss
a. Net loss is $90,000 and the partners have no written partnership agreement. (p. 602)
b. Net income is $60,000, and the partnership agreement states that the partners share profits and losses on the basis of their capital balances. (pp. 602–603)
c. Net income is $100,000. The first $60,000 is shared on the basis of partner capital balances. The next $30,000 is based on partner service, with Fultz getting 40% and Hardie 60%. The remainder is shared equally. (pp. 602–603) 
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