A client of yours is considering going into a partnership with a business associate. The partnership would own a retail gourmet ice cream shop. Your client anticipates investing $150,000 and working ten hours a week. His business associate will invest $50,000 and work forty hours a week. Your client has requested your informed perspective on a number of items before he commits to the business partnership. Requirements Your client has requested the following be included in a report (46 pages) that he can study while considering how to approach this business opportunity:

Your client does not think that splitting the partnership income 50-50 will be fair to either partner. He has asked you to recommend clauses in the partnership agreement that stipulate partnership income and loss allocations. Your client would also like you to create a schedule that shows what happens if this partnership is successful and the two partners agree to sell the company in 10 years. For the sake of this calculation, pretend that the partnership's assets in 10 years are $900,000, liabilities are $200,000, your client's capital is $400,000 and his associate's capital is $300,000. Pretend that the partnership assets are sold for $1,200,000, and the liabilities are settled for the existing value of $200,000.