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Required information Skip to question [ The following information applies to the questions displayed below. ] Mo , Lu , and Barb formed the MLB
Required information
Skip to question
The following information applies to the questions displayed below.
Mo Lu and Barb formed the MLB Partnership by making investments of $ $ and $ respectively. They predict annual partnership net income of $ 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 $ to Mo $ to Lu and $ to Barb; interest allowances of on their initial capital investments; and the remaining balance shared as follows: to Mo to Lu and to Barb.
Use the table to show how to distribute net income of $
Income Loss Sharing Plan
Plan a Mo Lu Barb Total
Net Income loss $
Balance allocated equally
Balance of income loss
Shares to the partners
Plan b Mo Lu Barb Total
Net Income loss $
Balance allocated in proportion to initial investments
Balance of income loss
Shares to the partners
Plan c Mo Lu Barb Total
Net income loss $
Salary allowances
Balance of income loss
Interest allowances
Balance of income loss
Balance allocated
Balance of income loss
Shares of the partners
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