Cleary, Wasser, and Nolan formed a partnership on January 1, 2012, 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 2012 and $180,000 in 2013. Each partner withdrew $1,000 for personal use every month during 2012 and 2013.

What was Wasser's total share of net income for 2012? Interest $15,000 + Salary $10,000 + Remainder (40%) $38,000 = $63,000

required step by step solution on this problem. That is , how the interest was calculated and the remainder 40%. How the $38,000 was calculated to get the answer of $63,000