Question
Ace, Becker, and Cap formed a partnership on January 1, yr 1, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they
Ace, Becker, and Cap formed a partnership on January 1, yr 1, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Becker, and (3) sharing the remainder of the income or loss in a ratio of 20% for Ace, and 40% each for Becker and Cap. Net income was $150,000 in yr 1 and $180,000 in yr 2. Each partner withdrew $1,000 for personal use every month during yr 1 and yr 2. What was Ace's total share of net income for yr 1?
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