Bob Frasier and Jack Hannigan form a partnership, contributing $105,000 and$35,000, respectively.
Determine their shares of net income or net loss for each of the following independent situations:
a. Net loss is $100,000 and the partners have no written partnership agreement.
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.
c. Net income is $130,000. The first $78,000 is shared on the basis of capital balances. The next $39,000 is based on partner service, with Frasier receiving 60% and Hannigan 40%. The remainder is shared equally.