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Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting by making capital contributions of $284,000, $320,000, and $214,000, respectively. They anticipate annual profit
Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting by making capital contributions of $284,000, $320,000, and $214,000, respectively. They anticipate annual profit of $490,800 and are considering the following alternative plans of sharing profits and losses a. Equally. b. In the ratio of their initial investments; or c. Salary allowances of $130,000 to Conway, $105,000 to Chan, and $80,000 to Scott and interest allowances of 15% on initial investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $490,800 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.)
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