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ear 1 Plan (a) Net Income (loss) Balance allocated in proportion to Watts Lyon T

ID: 2497892 • Letter: E

Question

ear 1 Plan (a) Net Income (loss) Balance allocated in proportion to Watts Lyon Total $ (14,000) (9,100 (14,000) 0 $ (9,100)S (14,000) 31500/9000 (4,900)|58500/90000 (9,100)(14,00 initial investments Balance of income (loss) Shares to the partners Plan (b) Net Income (loss) Balance allocated in proportion to S (4,900 Watts Lyon Total $ (14,000) (14,000) 0 $ (11,200)$ (14,000) 1/5 (2,800) 4/5(11,200) 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 S (2,800) Watts Lyon Total $ (14,000) 0 0 initial investments Balance of income (loss) Shares of the partners Plan (d) Net Income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners 0 01$ 0 Watts Lyon Total $ (14,000) 0 0 0 0 01$

Explanation / Answer

SOLUTION

Year 1, Plan D,

Balance of income( loss) = 14,000 + 18,000 = 32,000

Year 2, plan D,

Balance of income = 35,000 - 18,000 = 17,000.

Balance of income after intrest allowance = 17,000.- 8,100 = 8,900

Year 3rd, Plan D.

Balance of income (loss) = 58,333 - 18,000 = 40,333

Balance of income after intrest allowance = 40,333 - 8,100 = 32,233

Balance allocated equally = 16,116.5