Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made Japital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With

image text in transcribed
image text in transcribed
Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made Japital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner's beginning capital balance for the year. (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodmar: (b) 40% for Pinkman; and (c) 40% for White. Net income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew $1,500 for personal use every month during 2020 and 2021. What was Goodman's total share of net income for 2020? $41,500 $35,000 $26.000 $38.500 $47.500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting Volume 2

Authors: Frank Wood

4th Edition

0582413435, 978-0582413436

More Books

Students also viewed these Accounting questions

Question

Discuss the role of motivation in financial literacy.

Answered: 1 week ago

Question

Please analyze Revenue Ruling 2008-34 including law and issues.

Answered: 1 week ago