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7 Goodman, Pinkmen, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman). $175,000 (Pinkman). and $250,000 (White), respectively.
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Goodman, Pinkmen, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman). $175,000 (Pinkman). and $250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner's beginning capital balance for the year, (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodman; (b) 40% for Pinkman; and (c) 40% for White. Net income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew S1,500 for personal use every month during 2020 and 2021 What was the total capital balance for the partnership at December 31, 2021? Multiple Choice $936.000 $860,000 $882,000 $805,000 $924,000 Step by Step Solution
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