Exercise 12-8 (Algo) Preparing a statement of partner's equity LO P2 Mike and Rachel form M\&R Partnership. Mike invests $48,000 cash and Rachel invests $68,000 cash. The partners agree to share income as follows: Mike gets a salary allowance of $5,000 per year and Rachel gets a salary allowance of $9,800 per year; both get an annual interest allowance of 12% on their initial investment; and any remaining balance is shared equally. Net income for the year is $38,000. Also, Mike withdrew $1,800 cash from the partnership and Rachel withdrew $2,800. Prepare a statement of partners' equity for the year ended December 31. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses and withdrawals as negative values.)