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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 $69,300,$269,500, and $431,200, respectively. They predict annual partnership net income of $460,500 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 $80,800 to Mo, $60,600 to Lu, and $91,000 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.
2. 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 $460,500; and that Mo, Lu, and Barb withdraw $35,200,$49,200, and $65,200, respectively, at year-end. Note: Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.
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