Question
Cleary, Wasser, and Nolan formed a partnership on January 1, 2019, and made capital contributions of $100,000 (Cleary), $150,000 (Wasser), and $200,000 (Nolan), respectively. With
Cleary, Wasser, and Nolan formed a partnership on January 1, 2019, and made capital contributions of $100,000 (Cleary), $150,000 (Wasser), and $200,000 (Nolan), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partners beginning capital balance for the year; (2) annual compensation of $10,000 to Wasser; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Cleary; (b) 40% for Wasser; and (c) 40% for Nolan. Net income was $150,000 in 2019 and $180,000 in 2020. Each partner withdrew $1,000 for personal use every month during 2019 and 2020.
a) What was Wasser's total share of net income for 2019?
b) What was Nolan's total share of net income for 2019?
c) What was Cleary's total share of net income for 2019?
d) What was Nolan's capital balance at the end of 2019?
e) What was Wasser's capital balance at the end of 2019?
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