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Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $284,000, $320,000, and $214,000, respectively. They anticipate annual
Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year 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: Equally; In the ratio of their initial investments; or 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.) 2. Prepare a statement of changes
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