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Lori and Peter enter into a partnership and decide to share profits and losses as follows:
1. The first allocation is a salary allowance with Lori receiving $16,000 and Peter receiving $18,000.
2. The second allocation is 15% of the partners' capital balances at year end. On December 31, 2019, the capital balances for Lori and Peter are $90,000 and $20,000, respectively.
3. Any remaining profit or loss is allocated equally.
Problem 1: For the year ending December 31, 2019, the partnership reported net income of $55,000. What is Lori's share of the net income?
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