T. Conway, J. Chan, and S. Segal entered into a partnership called Chaos Consulting by making capital contributions for $490,000, $560,000 and $350,000 respectively. It is anticipated that annual net income for the year will be $780,000. The partners are considering the following alternative plans of sharing net incomes and losses:

a) Equally

b) In the ratio of their initial investments

c) Salary allowances of $190,000, to Conway, $92,000 for Chan and $120,000 to Segal and interest allowances of 12% on initial investments, with any remaining balance shared equally.

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a) Amount to T. Conway Amount to J. Chan Amount to S. Segal b) Amount to T. Conway Amount to ). Chan Amount to S. Segal c) Calculations Share to Conway Share to Chan Share to Segal Salary Allowance Interest Allowance Total Allocation to each partner