On January 1, Year 1, Harry, Hermione, and Ron form the partnership Magic Wands.
Harry contributes his elder tree containing many branches suitable for making wands.
The tree originally cost Harry $1,000 but now has an appraised value of $5,000. Herminone
promises to provide accounting support, handle all contracts, human resource functions
and similar functions while Ron promises to run the business on a day to day function.
Hermione contributes $4,000 in start-up money while Ron can only contribute $1000 in start-up
funds. Accordingly, the partnership agreement states that income is to be allocated accordingly:
1. Each partner is to get a 10% return on their beginning capital balance.
2. Ron is to receive $12,000 for operationg the business.
3. The remaining income or losses is to be allocated to Harry, Hermione, and Ron
on a ratio of 30%, 30%, and 40%
4. Harry and Hermione can withdraw $500 a month each while Ron can withdraw $1,000.
After great effort, the partnership is successful and earns income in each of the first three years:
Year	Income
1	$ 15,000
2	$ 45,000
3	$ 60,000
Make tables to allocate income and show ending capital balance at the end of each of the three
Years.