A partnership begins its first year of operations with the following capital balances: Winston, Capital $ 98,000 Durham, Capital 88,000 Salem, Capital 98,000 According to the articles of partnership, all profits will be assigned as follows: Winston will be awarded an annual salary of $10,000 with $5,000 assigned to Salem. The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year. The remainder will be assigned on a 5:2:3 basis, respectively. Each partner is allowed to withdraw up to $10,000 per year. The net loss for the first year of operations is $36,000 and net income for the subsequent year is $31,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winstons capital account at the end of the second year?

2.

Following are the capital account balances for the William, Jennings, and Bryan partnership:

William (45% of gains and losses)	$	300,000
Jennings (45%)		250,000
Bryan (10%)		230,000

Darrow invests $345,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jenningss capital balance?