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It is January 1st 2023 and the partnership of Pelosi, Schiff, Trump and Biden (PSTB) has the following capital accounts 15% Pelosi $100,000 20% Schiff
It is January 1st 2023 and the partnership of Pelosi, Schiff, Trump and Biden (PSTB) has the following capital accounts | |||||
15% | Pelosi | $100,000 | |||
20% | Schiff | $200,000 | |||
40% | Trump | $500,000 | |||
25% | Biden | $500,000 | |||
Partners receive interest on their beginning of the year capital account of 10%. | |||||
Trump receives an annual salary of $80,000; Pelosi receives an annual salary of $30,000 | |||||
Every year Trump withdraws $40,000 for hair dye and Biden withdraws $25,000 for hair implants | |||||
In 2023 the partnership reported income of $300,000 | before partner salaries or partner interest | ||||
In 2024 the partnership reported income of $340,000 | before partner salaries or partner interest | ||||
In 2025 the partnership reported income of $250,000 | before partner salaries or partner interest | ||||
REQUIRED: | FOR 2023, 2024 AND 2025 | DETERMINE; | |||
a) the distribution of income to each partner | |||||
b) each partner's ending capital account (December 31st) |
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