Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions...

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Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $280,000, $316,000, and $210,000, respectively. They anticipate annual profit of $483,600 and are considering the following alternative plans of sharing profits and losses: a. Equally, b. In the ratio of their initial investments; or c. Salary allowances of $135,000 to Conway, $103,000 to Chan, and $78,000 to Scott and interest allowances of 10% on initial Investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $483,600 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan Calculations (a) Profit (b) Profit (c) Profit Salary allowances Interest allowances Share to Conway Share to Chan Share to Scott $ 161,200 $161,200 $ 161,200 $ 483,600 $ 168,000 $ 189,600 $ 126,000 $ 483,600 $ 135,000 $ 103,000 $ 78,000 21,000 28,000 31,600 $ 483,600 Required: 1. Use the schedule to show how a profit of $483,600 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Calculations Sharing Plan (a) Profit (b) Profit (c) Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of Profit Balance allocated equally Balance of Profit Shares of partners Share to Conway $161,200 Share to Chan Share to Scott Total $161,200 $161,200 $ 483,600 $ 168,000 $ 189,600 $126,000 $483,600 $ 483,600 $ 135,000 $103,000 $ 78,000 28,000 31,600 21,000 $ 163,000 $134,600 $ 99,000 $ 396,600 $ 87,000 29,000 29,000 29,000 $ 87,000 0 $ 192,000 $ 163,600 $128,000 $ 483,600 2. Prepare a statement of changes in equity showing the allocation of profit to the partners, assuming they agree to use alternative (c) and the profit actually earned for the year ended December 31, 2023, is $483,600. During the year, Conway, Chan, and Scott withdraw $58,000, $48,000, and $38,000, respectively. (Enter all amounts as positive values.) CCS Consulting Statement of Changes in Equity For Year Ended December 31, 2023 Conway Chan Scott Total Capital, January 1 0 280,000 316,000 210,000 806,000 Add: Profit 192,000 163,600 128,000 483,600 Total 472,000 479,600 338,000 1,289,600 Less: Partners' withdrawals 58,000 48,000 38,000 144,000 Capital, December 31 414,000 431,600 300,000 1,145,600 Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $280,000, $316,000, and $210,000, respectively. They anticipate annual profit of $483,600 and are considering the following alternative plans of sharing profits and losses: a. Equally, b. In the ratio of their initial investments; or c. Salary allowances of $135,000 to Conway, $103,000 to Chan, and $78,000 to Scott and interest allowances of 10% on initial Investments, with any remaining balance shared equally. Required: 1. Use the schedule to show how a profit of $483,600 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan Calculations (a) Profit (b) Profit (c) Profit Salary allowances Interest allowances Share to Conway Share to Chan Share to Scott $ 161,200 $161,200 $ 161,200 $ 483,600 $ 168,000 $ 189,600 $ 126,000 $ 483,600 $ 135,000 $ 103,000 $ 78,000 21,000 28,000 31,600 $ 483,600 Required: 1. Use the schedule to show how a profit of $483,600 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Calculations Sharing Plan (a) Profit (b) Profit (c) Profit Salary allowances Interest allowances Total salaries and interest allocation Balance of Profit Balance allocated equally Balance of Profit Shares of partners Share to Conway $161,200 Share to Chan Share to Scott Total $161,200 $161,200 $ 483,600 $ 168,000 $ 189,600 $126,000 $483,600 $ 483,600 $ 135,000 $103,000 $ 78,000 28,000 31,600 21,000 $ 163,000 $134,600 $ 99,000 $ 396,600 $ 87,000 29,000 29,000 29,000 $ 87,000 0 $ 192,000 $ 163,600 $128,000 $ 483,600 2. Prepare a statement of changes in equity showing the allocation of profit to the partners, assuming they agree to use alternative (c) and the profit actually earned for the year ended December 31, 2023, is $483,600. During the year, Conway, Chan, and Scott withdraw $58,000, $48,000, and $38,000, respectively. (Enter all amounts as positive values.) CCS Consulting Statement of Changes in Equity For Year Ended December 31, 2023 Conway Chan Scott Total Capital, January 1 0 280,000 316,000 210,000 806,000 Add: Profit 192,000 163,600 128,000 483,600 Total 472,000 479,600 338,000 1,289,600 Less: Partners' withdrawals 58,000 48,000 38,000 144,000 Capital, December 31 414,000 431,600 300,000 1,145,600