Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 The following information applies to the questions displayed below) Mo, Lu, and Barb formed the MLB Partnership by making investments of $79,200, 5308,000, and $492,800, respectively, They predict annual partnership net income of $519,000 and are considering the following alternative plans of sharing Income and loss (m) equally. () in the ratio of their initial capital investments, or (a) salary allowances of $85,200 to Mo, 563,900 to Lu, and $96,500 to Barb, interest allowances of 10% on their initial capital investments; and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. Problem 12-4A Part 1 Required: 1. Use the table to show how to distribute net income of 5519,000 for the calendar year under each of the alternative plans being considered. (Do not round Intermediate calculations.) Income (Los) Sharing Plan Mo $ Total 519.000 0 510,000 17 Not Income foss) Balance alocated equal Balance of income on) Share to the parts 1/3 $ 5 O 5 $ 5 0 0 Mo LU 519.000 $492,800/5580,000 Not Income () Balance allocated in proportion to initial investments Balance of income foss) $300,000/5880,000 0 579,200/5680,000 $ $19.000 Check Required information 1. USE U UW HUW W SUID ILUME DE BUUU IOF e Calendar year under Creuve pas ng considered. (Do not round intermediate calculations.) Income (Loss) Sharing Plan Me LU Bart 1/3 1/3 1/3 Total 5 519,000 0 $ 519.000 os $ 0 $ 0 5 Mo Total 519,000 $ $79,200/5880,000 $308,000/5880,000 $492,800/5880,000 0 519,000 Net Income (loss) Balance allocated equally Balance of income (0) Shares to the partners Plant) Net Income foss) Balance allocated in proportion to tal investments Balance of income (1) Shares to the partners Plan (0) Net income iss) Salary allowances Balance of income (loss) Interest allowances Balance of income (5) Balance allocated Balance of income (s) Shares of the partners 5 0 S $ 0 $ 0 $ Mo Lu $ 519.000 0 0 0 0 $ 05 $ 0 5 5 D 23