A client of yours is considering going into a partnership with a business associate. The partnership would own a retail gourmet ice cream shop. Your client anticipates investing $150,000 and working ten hours a week. His business associate will invest $50,000 and work forty hours a week. Your client has requested your informed perspective on a number of items before he commits to the business partnership. Requirements Your client has requested the following be included in a report (46 pages) that he can study while considering how to approach this business opportunity:

Your client does not think that splitting the partnership income 50-50 will be fair to either partner. He has asked you to recommend clauses in the partnership agreement that stipulate partnership income and loss allocations. Create a recommended income allocation schedule using interest allowances at 10 percent a year and salary allowances at $25 an hour. For the sake of example, assume partnership income of $100,000. Create a recommended loss allocation schedule. For the sake of example, assume partnership losses of $40,000.