Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $278,000, $314,000, and $208,000, respectively. They anticipate annual profit of $480,000 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 $131,000 to Conway, $102,000 to Chan, and $77,000 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 $480,000 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan (0) ma ProM nicht Calculations Share to Conway Share to Chan Share to Scott $ Total

Ben Conway, Ida Chan, and Clair Scott formed CCS Consulting this year by making capital contributions of $278,000, $314,000, and $208,000, respectively. They anticipate annual profit of $480,000 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 $131,000 to Conway, $102,000 to Chan, and $77,000 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 $480,000 would be distributed under each of the alternative plans being considered. (Enter all amounts as positive values.) Profit (Loss) Sharing Plan (0) ma ProM nicht Calculations Share to Conway Share to Chan Share to Scott $ Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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