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CHECK FIGURES: d. Year 1: Phillip: $(86,000); Case: $(14,000); d. Year 2: Phillip: $39,000; Case: $111,000; d. Year 3: Phillip: $89,000; Case: $161,000

ntribute one third time and Case full time. They have discussed the followingal which . In the ratio of their initial investments, which they have agreed will be Sie a partnership to import Belgian chocolate full titme They have discussed the followin CHAPTER 11 Partnerships offasefulltime. Th Phillip and Case are in the process will be $160,000 for ll contribute for sharing profit and losses In proportion to the time devoted to the business. e. A salary allo and $240,000 for Case. with thet investments, and loss; Year 2, $150 per month to Case and the balance in accordance wance of s5,000 initial investment ratio. d. A $5 000per month salary allowance to Case, 15% interest on their initial inv the balance equally. e partners expect the business to generate profit as follows: Year 1, $100,000 lo The partners e profit, and Year 3, $250,000 profit. Required Prepare four schedules with the following column headings: Share to Phillip Share to Case Year Calc Total Complete a schedule for each of the four plans being considered by showing how the partnership proft or loss for each year would be allocated to the partners. Round your answers to the nearest whole dolla

please full calculation and explanation.

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ALTERNATIVE A Share to Philip 1 $40,000 Share to Case Total Calculations for Philip --100000 0.40 -1500000.40 -2500000.40 Calculations for Case --1000000.60 -1500000.60 -2500000.60 Year 60,000 $ -100,000 60,000$ 90,000 150,000 3 $100,000$150,000 $ 250,000 Initial investment by Philip is 160000 and by Case is 240000. So the Ratio of Philip is 160000/400000 is 0.40 and of Case is 240000/400000-0.60 ALTERNATIV Share to Philip Share to Case 25,000 $ 75,000 Total Calculations for Philip --100000/4*1 150000/4*1 -250000/4*1 Calculations for Case -100000/4*3 150000/4*3 -250000/4*3 Year $ -100,000 37,500 $ 112,500 150,000 62,500 $ 187,500 250,000 Philip will devote 1/3rd time and case will devote full time i.e. 3/3. So total working hours became 4 and its division will be 1/4 to Philip and 3/4 to Case ALTERNATIVE C Year Share to Philip Share to Case Total Calculations for Philip Calculations for Case 64,000 36,000 S -100,000-100000 5000 12)0.40 5000 12(-100000 5000 12) *0.60 36,000 114,000 150,000(150000 5000 12) 0.40 5000*12 (150000 - 5000 12) 0.60 76,000 $ 174,000 $250,000=(250000-5000*12) * 0.40 :5000*12+(250000-5000*12) * 0.60 3 $ ALTERNATIVE D Year Share to Philip Share to Case Total Calculations for Philip Calculations for Case -160000 15% + (-100000- _5000*12 + 240000*15% + (-100000- =160000*15% + (150000--5000*12 + 240000*15% + (150000- 160000*15% + (250000- _5000*12 + 240000*15% + (250000- -100,000 24000- 5000*1 86,000 -14,000 39,000 $ 111,000 150,000 89,000 $ 161,000 250,000 - 36000)/224000-5000 12- 36000)/2 24000- 5000 12 36000)/224000 5000 12 36000)/2 24000 5000 12 36000 )/2 24000 5000 12 36000 )/2

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