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Mo, Lu, and Barb formed the MLB Partnership by making investments of $85,500, $332,500, and $532,000, respectively. They predict annual partnership net income of $555,000 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 $88,000 to Mo, $66,000 to Lu, and $100,000 to Barb; interest allowances of 10% on their initial capital investments; and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

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 $555,000; and that Mo, Lu, and Barb withdraw $46,000, $60,000, and $76,000, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.)

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 $555,000; and that Mo, Lu, and Barb withdraw $46,000, $60,000, and $76,000, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.)

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