Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $75,600, $294,000, and $470,400, respectively. They predict annual partnership net income of $498,000 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 $83,600 to Mo, $62,700 to Lu, and $94,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. rev: 09_28_2017_QC_CS-102797

1. Use the table to show how to distribute net income of $498,000 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.)

Income (Loss) Sharing Plan Mo Lu Barb Total $ 498,000 Mo Lu Barb Total $ 498,000 Plan (a) Net Income (loss) Balance allocated equally Balance of income (loss) Shares to the partners Plan (b) Net Income (loss) Balance allocated in proportion to initial investments Balance of income (loss) Shares to the partners Plan (c) Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) HHHHHHH Lu HHHHHHHH Barb Total $ 498,000 Balance allocated Balance of income (loss) Shares of the partners