LLC Net Income and Statement of Members' Equity Marvel Media, LLC, has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC. On January 1, 20Y2, the three members had equity of $280,000, $70,000, and $170,000, respectively. WLKT Partners contributed an additional $70,000 to Marvel, Media, LLC, on June 1, 20Y2. Madison Sanders received an annual salary allowance of $162,400 during 20Y2. The members’ equity accounts are also credited with 15% interest on each member's January 1 capital balance. Any remaining income is to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses, and net income for Marvel Media, LLC, for 20Y2 were $1,033,072, $553,072 and $480,000 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. Schedule of Division of Income WLKT Partners Madison Sanders Observer Newspaper, LLC Total Salary allowance $ 162,400 $ 162,400 Interest allowance $ 42,000 10,500 $ 25,500 78,000 Remaining income (4:3:3) Net income $ $ $ $ b. Prepare the journal entries to close the (1) net income and (2) withdrawals to the individual member equity accounts. For a compound entry, if an amount box does not require an entry, leave it blank. (1) Revenues 1,033,072 Expenses 553,072 WLKT Partners, Member Equity Madison Sanders, Member Equity Observer Newspaper, LLC, Member Equity (2) WLKT Partners, Drawing Madison Sanders, Member Equity Observer Newspaper, LLC, Member Equity WLKT Partners, Drawing Madison Sanders, Drawing Observer Newspaper, LLC, Drawing c. Prepare a statement of members' equity for 20Y2. If an amount box does not require an entry, leave it blank. Marvel Media, LLC Statement of Members' Equity For the Year Ended December 31, 20Y2 WLKT Partners Madison Sanders Observer Newspaper, LLC Total Balances, January 1, 20Y2 $ 280,000 $ 70,000 $ 170,000 $ Capital additions 70,000 70,000 $ 350,000 $ 70,000 $ 170,000 $ 70,000 Net income for the year $ $ $ $ Member withdrawals Balances, December 31, 20Y2 $ $ $ $ d What are the advantages of an income-sharing agreement for the members of this LLC? Without an income-sharing agreement, each member would be credited with an equal proportion of the total earnings, or one-third each. Separate contributions can be acknowledged in the income-sharing formula.