Return to question 8 Required information Part 2 of 3 The following information

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Return to question 8 Required information Part 2 of 3 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 $72,000, $280,000, and $448,000, respectively. They predict annual partnership net income of $477000 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 $82,000 to Mo, $61,500 to Lu, and $92,500 to Barb; interest allowances of 10% balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb .81 points on their initial capital investments; and the 2. Prepare a statement of partners' equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $477,000, and that Mo, Lu, and Barb withdraw $36,900, $50,900, and $66,900, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.) Answer is not complete MLB PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Mc Graw K Prev8 9of 11 Next

Explanation / Answer

Statement of partner's equity :

Mo Lu Barb Total Initial partnership investment 72000 280000 448000 800000 Net income Salary allowance 82000 61500 92500 236000 Interest allowance 7200 28000 44800 80000 Balance allocated 32200 64400 64400 161000 Total net income 121400 153900 201700 477000 Total 193400 433900 649700 1277000 Less: partner's withdrawal -36900 -50900 -66900 -154700 Total ending partnership balance 156500 383000 582800 1122300

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