Required information [The following information applies to the questions displayed below.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $68,400, $266,000, and $425,600, respectively. They predict annual partnership net income of $456,000 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 $80,400 to Mo, $60,300 to Lu, and $90,500 to Barb; interest allowances of 10% on their initial capital investments, and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. Required: 1. Use the table to show how to distribute net income of $456,000 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.) Required information [The following information applies to the questions displayed below] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $68,400, $266,000, and $425,600, respectively. They predict annual partnership net income of $456,000 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 $80,400 to Mo, $60,300 to Lu, and $90,500 to Barb; interest allowances of 10% on their initial capital investments, and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. Required: 1. Use the table to show how to distribute net income of $456,000 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.) Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $68,400, $266,000, anc $425,600, respectively. They predict annual partnership net income of $456,000 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 $80,400 to Mo, $60,300 to Lu, and $90,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. Required: 1. Use the table to show how to distribute net income of $456,000 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.) Income (Loss) Sharing Plan
