Question
Goody, Pinky, and Molly formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goody), $175,000 (Pinky), and $250,000 (Molly), respectively. With
Goody, Pinky, and Molly formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goody), $175,000 (Pinky), and $250,000 (Molly), respectively. With respect to 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 Pinky; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goody (b) 40% for Pinky (c) 40% for Molly. 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 Molly's total share of net income for 2020?
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