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Required information [ The following information applies to the questions displayed below. ] Mo , Lu , and Barb formed the MLB Partnership by making
Required information
The following information applies to the questions displayed below.
Mo Lu and Barb formed the MLB Partnership by making investments of $$ and $ respectively. They predict annual partnership net income of $ and are considering the following alternative plans of sharing income and loss: a equally; b in the ratio of their initial capital investments; or c salary allowances of $ to Mo $ to Lu and $ to Barb; interest allowances of on their initial capital investments; and the remaining balance shared as follows: to Mo to and to Barb.
Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan c that income earned is $; and that Mo Lu and Barb withdraw $$ and $ respectively, at yearend. Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.
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