Bill Beck, Bruce Beck, and Barb Beck formed the BBB Partnership by making capital contributions of $81,900, $318,500, and $509,600, respectively. They predict annual partnership net income of $534,000 and are considering the following alternative plans of sharing income and loss: (a) equally; (b) in the ratio of their initial capital investments; or (c) salary allowances of $86,400 to Bill, $64,800 to Bruce, and $98,000 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Bill, 40% to Bruce, and 40% to Barb. Bill, Bruce, and Barb withdraw $43,600, $57,600, and $73,600, respectively, at year-end.

1.	Use the table to show how to distribute net income of $534,000 for the calendar year under each of the alternative plans being considered.

2.	Prepare a statement of partners equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $236,200, and that Bill, Bruce, and Barb withdraw $43,600, $57,600, and $73,600, respectively, at year-end

3.	Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $236,200. Also close the withdrawals accounts.