Watts and Lyon are forming a partnership. Watts invests $31,500 and Lyon imvests $58,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon wil work three-fourths, They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their intial copital imvestments; (b) in proportion to the time devated to the business: (c) a satary allowance of $12000 per year to Lyon and the remaining balance in accordonce with the ratio of their in tial copital investments, or (d) a salary allowance of $12.000 per year to Lyon, 12% interest on their initial capital investments, and the remain ng balance shared equally. The partners expect the business to perform as follows: Year 1,$17,000 net loss, Year 2,542,500 net income; and yest 3,570,833 net income. Required: Complete the tables, one for esch of the first three yedrs, by showing how to allocate partnership income or loss to the partners under each of the fouf plans belng considered. Note: Enter all allowances as positive values. Enter losses and capital deficits, if any, as negative values. Do not round intermediate calculations. Round final answer to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Complete the tables, one for esch of the first three years, by showing how to aliocate partnership income or lost to the partners under each of the four plans being considered. Watts and Lyon are forming a partnership. Watts invests $31,500 and Lyon imvests $58,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon wil work three-fourths, They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their intial copital imvestments; (b) in proportion to the time devated to the business: (c) a satary allowance of $12000 per year to Lyon and the remaining balance in accordonce with the ratio of their in tial copital investments, or (d) a salary allowance of $12.000 per year to Lyon, 12% interest on their initial capital investments, and the remain ng balance shared equally. The partners expect the business to perform as follows: Year 1,$17,000 net loss, Year 2,542,500 net income; and yest 3,570,833 net income. Required: Complete the tables, one for esch of the first three yedrs, by showing how to allocate partnership income or loss to the partners under each of the fouf plans belng considered. Note: Enter all allowances as positive values. Enter losses and capital deficits, if any, as negative values. Do not round intermediate calculations. Round final answer to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Complete the tables, one for esch of the first three years, by showing how to aliocate partnership income or lost to the partners under each of the four plans being considered
