ce is allocated 70 percent of all profits and losses with the remaining 30 percent assigned to robbins after interest of 7 percent is given to each partner based on beginning capital balances. on january 2, 2021, jeffrey invests $43,000 cash for a 20 percent interest in the partnership. this transaction is recorded by the goodwill method. after this transaction, 7 percent interest is still to go to each partner. profits and losses will then be split as follows: prince (50 percent), robbins (30 percent), and jeffrey (20 percent). in 2021, the partnership reports a net income of $12,000.