Year 1 Year 2 Year 3 Complete the tables, one for each of the first three years, by showing how to allocate partnership income or partners under each of the four plans being considered. Watts Lyon Year 2 Plan (a) Net Income (loss) Balance allocated in proportion to initial investments $ Total 45,000 31,500/90,000 58,500/90,000 0 $ 0 $ 45,000 0 $ Watts Lyon Total $ $ 45,000 1/4 3/4 0 0 0 0 Balance of income (loss) Shares to the partners Plan (b) Net Income (loss) Balance allocated in proportion to time devoted Balance of income (loss) Shares to the partners Plan (c) Net Income (loss) Salary allowances Balance of income (loss) Balance allocated in proportion to initial investments Balance of income (loss) Shares to the partners Watts Lyon $ Total 45,000 0 31,500/90,000 58,500/90,000 0 45,000 $ $ 0 0 Year 1 Year 2 Year 3 Complete the tables, one for each of the first three years, by showing how to allocate partnership income or partners under each of the four plans being considered. Watts Lyon Year 2 Plan (a) Net Income (loss) Balance allocated in proportion to initial investments $ Total 45,000 31,500/90,000 58,500/90,000 0 $ 0 $ 45,000 0 $ Watts Lyon Total $ $ 45,000 1/4 3/4 0 0 0 0 Balance of income (loss) Shares to the partners Plan (b) Net Income (loss) Balance allocated in proportion to time devoted Balance of income (loss) Shares to the partners Plan (c) Net Income (loss) Salary allowances Balance of income (loss) Balance allocated in proportion to initial investments Balance of income (loss) Shares to the partners Watts Lyon $ Total 45,000 0 31,500/90,000 58,500/90,000 0 45,000 $ $ 0 0