Amber

Williams

,

Jean

Tidd

,

and Oscar

Warlock

decide to form a T-shirt design partnership.

Williams

figures this T-shirt design business will help her other company,

Wonder Wilderness

Company, with any T-shirt design needs. Additionally,

Tidd

and

Warlock

have connections with many companies, and can expand and grow this new partnership. Each of the three partners contributes

$22 comma 000

cash to start up the WTW partnership. They agree to share profits in two steps. First,

Tidd

will receive

$9 comma 000

and

Warlock

will receive

$18 comma 000

because they will do most of the graphic design work. Any remaining profits or losses will be shared

1

:2:3

for

Williams

,

Tidd

,

and

Warlock

.

The business starts on January 1,

2021

.

On December 31,

2021

,

the business posted a loss of

$15 comma 000

.

Williams

decides to withdraw from the partnership on December 31,

2021

.

Tidd

and

Warlock

agree to give

Williams

$4 comma 700

for her equity interest.