Question
Cleary, Wasser, and Nolan formed a partnership on January 1, 200X, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed
Cleary, Wasser, and Nolan formed a partnership on January 1, 200X, 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 Wasser, and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was $150,000 in 200X. Each partner withdrew $1,000 for personal use every month during 200X. What are the capital balances at the end of 200X for Wasser, Nolan and Cleary?
Wasser = $213,000 Nolan = 258,000 Cleary = $129,000
Wasser = $163,000 Nolan = 246,000 Cleary = $117,000
Wasser = $201,000 Nolan = 246,000 Cleary = $117,000
Wasser = $260,000 Nolan = 210,000 Cleary = $130,000
Wasser = $193,000 Nolan = 248,000 Cleary = $123,000
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