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Assume that Baker, Warner, and Rice form the BWR Partnership by making capital contributions of $200,000. $300,000, and $500,000. respectively. BWR predicts annual partnership net
Assume that Baker, Warner, and Rice form the BWR Partnership by making capital contributions of $200,000. $300,000, and $500,000. respectively. BWR predicts annual partnership net income of $450,000. The partners are considering various plans for sharing income and loss. Assign a different team member to compute how the projected $450,000 income would be shared under each of the following separate plans: Shared equally. In the ratio of the partners' initial capital investments. Salary allowances of $50,000 to Baker, $60,000 to Warner, and $70,000 to Rice, with the remaining balance shared equally. Interest allowances of 10% on the partners' initial capital investments, with the remaining balance shared equally. In sequence, each member is to present his or her income-sharing calculations with the team. As a team identify and discuss at least one other possible way that income could be shared
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