Harriet Monroe and Ozzie Young are in the process of forming a partnership to which Monroe will devote one-fourth time and Young will devote full time. They have discussed the following plans for sharing net incomes and losses.

a. In the ratio of their investments which they have agreed to maintain at \(\$ 49,800\) for Monroe and \(\$ 74,700\) for Young.

\(b\). In proportion to the time devoted to the business.

c. A salary allowance of \(\$ 5,250\) per month to Young and the balance in their investment ratio.

d. A \(\$ 5,250\) per month salary allowance to Young, \(10 \%\) interest on their investments, and the balance equally.

The partners expect the business to generate income as iollows: year \(1, \$ 30,500\) net loss; year \(2, \$ 82,500\) net income; and year 3, \(\$ 215,000\) net income.

\section*{Required}
1. Prepare three schedules with the following columnar headings:

2. Complete a schedule for each of the first three years by showing how the partnership income for each year would be allocated to the partners under each of the four plans being considered. Round your answers to the nearest whole dollar.

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Income/ Loss Sharing Plan Year. Calculations Monroe Young