Bosch and Gilbert are in the process of forming a partnership to which Bosch will devote one-third time and Gilbert will devote full time. They have discussed the following alternative plans for sharing net incomes and losses. a. In the ratio of their initial investments, which they have agreed will be $140,000 for Bosch and $210,000 for Gilbert. b. In proportion to the time devoted to the business. c. A salary allowance of $8,000 per month to Gilbert and the balance in accordance with their initial investment ratio. d. A $10,500 per month salary allowance to Gilbert, 15% interest on their initial investments, nd the balance equally. The partners expect the business to generate income as follows: Year 1, $85,000 net income; Year 2, $45,000 net loss; and Year 3, $348,000 net income.
Required Prepare four schedules with the following column headings:
Complete a schedule for each of the four plans being considered by showing how the partnership income or loss for each year would be allocated to the partners. Round your answers to the nearest wholedollar.