part 2 number 3

Activity in the capital accounts o 2019, follows: apital accounts of the partners of Brown & Finley LLP for the fiscal Brown Capital Finley, Capital Balance, Jan, 1 $140,000 $260,000 Investment, July 1 20,000 Withdrawal, October 1 40,000 Net income of Brown & Finley LLP for the year ended Prepare a working paper to compute & Finley LLP for the year ended December 31, 2019, amounted to 586,000. Working paper to compute the division of the $86.000 net income of Brown & Finley LLE under each of the following assumptions a. The partnership contract is silent as to sharing of net income and losses. et income and losses are divided on the basis of average capital account balance (not includes income or loss for the current year) c. Net income and losses are divided on the basis of beginning capital account balance. d. Net income and losses are divided on the basis of ending capital account balance. e. Interest at 15% on average capital balances, remainder 60% Brown, 40% Finley. Part II The partnership contract of Crespo -Smith LLP provided for the division of net income or losses in the following manner. 1. Interest at 12% on average capital balances to each partner 2. Salary allowance for Crespo, $32,000, Smith, $46,000. 3. Residual income or loss 30% Crespo, 70% Smith Presalarie income of Crespo -Smith, LLP for 2019 was $148,000, and average capital account balance for the year were Crespo, $132,000 and Smith, $218,000, Prepare a working paper to compute each partner's share of the 2009 net income of Crespo --Smith Part III (6 pts. each) 1. List at least five items that should be included in a limited liability partnershi