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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 investments of $76,500, $297,500, and $476,000, respectively. They predict annual partnership net income of $502,500 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 $84,000 to Mo, $63,000 to Lu, and $95,000 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. Required: 1. Use the table to show how to distribute net income of $502,500 for the calendar year under each of the alternative plans being considered. (Do not round intermediate calculations.) Income (Loss) Sharing Plan Mo Lu Barb $ Total 502,500 100 502,400 1/3 $ 20 1/3 $ 40 1/3 $ 40 $ Plan (a) Net Income (loss) Balance allocated equally Balance of income (loss) Shares to the partners Plan (b) Net Income (loss) Balance allocated in proportion to initial investments $ 20 $ 40 $ 40 $ 100 Mo Lu Barb Total 502,500 $ $76,500/$850,000 $ 76,500 $297,500/$850,000 $ 297,500 S476,000/S850,000 $ 476,000 850,000