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Mike, George, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Mike). $175,000 (George), and $250.000 (White), respectively. With
Mike, George, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Mike). $175,000 (George), and $250.000 (White), 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 George and (3) the remainder of the income or loss to be spit among the partners in the following percentages: (a) 20% for Mike; (b) 40% for George; 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 the amount of interest attributed to George in the income distribution for 2021? A $17.450 B. $20.750 C. 524,150 D. $25.950 E $17.500
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