### Partnership Profit and Loss Allocation Case StudySherise Saad, Kait Steven, and Jed Pert have formed a partnership. Saad invested $110,000, Steven $192,500, and Pert $247,500. Saad will manage the store, Steven will work in the store three-quarters of the time, and Pert will not work in the business.#### Requirements1. **Compute the partners' shares of profits and losses under each of the plans listed.** a. **Net loss of $73,500** - The partnership agreement allocates 40 percent of profits to Saad, 35 percent to Steven, and 25 percent to Pert. The agreement does not discuss the sharing of losses. - Complete the following table to calculate the allocation of net loss. (Use a minus sign or parentheses for net loss amounts. Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) | Saad | Steven | Pert | Total | | --- | --- | --- | --- | | **Total (net loss)** | | | | | **Allocation to partners:** | | | | | **Saad** | _Input Calculated Amount Here_ | | | | **Steven** | | _Input Calculated Amount Here_ | | | **Pert** | | | _Input Calculated Amount Here_ | | **Total** | _Input Calculated Amount Here_ | _Input Calculated Amount Here_ | _Input Calculated Amount Here_ | | **Net loss left to allocate** | _Input Calculated Amount Here_ | _Input Calculated Amount Here_ | _Input Calculated Amount Here_ | | **Net loss to partners** | _Input Amount Here_ | _Input Amount Here_ | _Input Amount Here_ | b. **Net income for the year is $137,000** - The first $70,000 is allocated on the basis of partners' capital investments. The next $50,500 is based on service with $20,500 going to Saad and $30,000 going to Steven. Any remainder is shared equally. c. **Net loss for the year is $137,000** - The first $70,000 is allocated on the basis of partners' capital investments. The next $50,500 is

As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…

Sherise Saad, Kait Steven, and Jed Pert have formed a partnership. Saad invested $110,000, Steven $192,500, and Pert $247,500. Saad will manage the store, Steven will work in the store three-quarters of the time, and Pert will not work in the busin Required Requirement 1. Compute the partners' shares of profits and losses under each of the plans listed. a. Net loss is $73,500, and the partnership agreement allocates 40 percent of profits to Saad, 35 percent to Steven, and 25 percent to Pert. The agreement does not discuss the sharing of losses. Complete the following table to calculate the allocation of net loss. (Use a minus sign or parentheses for net loss amounts. Complete all answer boxes. For amounts that are $0, make sure to enter "0" in the appropriate column.) - X Total (net loss) Allocation to partners: Saad Steven Pert Total Net loss left to allocate Net loss to partners Saad, Steven, and Pert Allocation of Profits and Losses Saad Steven Pert Total Required 1. Compute the partners' shares of profits and losses under each of the following plans: a. Net loss is $73,500, and the partnership agreement allocates 40 percent of profits to Saad, 35 percent to Steven, and 25 percent to Pert. The agreement does not discuss the sharing of losses. b. Net income for the year is $137,000. The first $70,000 is allocated on the basis of partners' Capital investments. The next $50,500 is based on service with $20,500 going to Saad and $30,000 going to Steven. Any remainder is shared equally. c. Net loss for the year is $137,000. The first $70,000 is allocated on the basis of partners' Capital investments. The next $50,500 is based on service with $20,500 going to Saad and $30,000 going to Steven. Any remainder is shared equally. 2. Revenues for the year were $859,500, and expenses were $722,500. Under plan b.. prepare the partnership income statement for the year. Assume a year-end of September 30, 2023. 3. How will what you learned in this problem help you manage a partnership? Driet Dene