I need help big time !!!!!

Problem 12-1A Allocating partnership income and loss; sequential years LO P2 Irene Watts and John Lyon are forming a partnership to which Watts will devote three-fourth time and Lyon will devote full time. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments, which they have agreed will be $31,500 for Watts and $58,500 for Lyon, (b) in proportion to the time devoted to the business, (c) a salary allowance of $2,250 per month to Lyon and the balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of S2.250 per month to Lyon, 9% interest on their initial capital investments, and the balance shared equally. The partners expect the business to perform as follows: year 1. $16,000 net loss, year 2 $40.000 net income; and year 3, $66,667 net income Required 9 S 40,000 Balance allocated in proportion to S 40,000 0 S S 40,000 Balance of income (loss) Shares to the partners Lyon $ 40,000 Balance of income (loss) Balance allocated in proportion to S 40,000 Shares of the partners Plan ( Total S 40,000 Lyon Balance of income (loss) Interest allowances Balance of