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Required information Problem 12-4A Partnership incomeallocation, statement of partners' equity, and closing entries LOP2 [The following information applies to the questions displayedbelow.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnershipby making capital contributions of $77,400, $301,000, and $481,600,respectively. They predict annual partnership net income of$508,500 and are considering the following alternative plans ofsharing income and loss: (a) equally; (b) in the ratio of theirinitial capital investments; or (c) salary allowances of $84,400 toMo, $63,300 to Lu, and $95,500 to Barb; interest allowances of 10%on their initial capital investments; and the balance shared asfollows: 20% to Mo, 40% to Lu, and 40% to Barb.Problem 12-4A Part 2 2. Prepare a statement of partners’ equityshowing the allocation of income to the partners assuming theyagree to use plan (c), that income earned is $227,700, and that Mo,Lu, and Barb withdraw $40,500, $54,500, and $70,500, respectively,at year-end. (Do not round intermediate calculations. Enter allallowances as positive values. Enter losses as negativevalues.)