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PLEASE ANSWER QUESTION CORRECTLY AND SHIW WORK PLEASE!!! G, P, and W formed a partnership on January 1,2022 , and made capital contributions of $125,000(G),$175,000(P),
PLEASE ANSWER QUESTION CORRECTLY AND SHIW WORK PLEASE!!!
G, P, and W formed a partnership on January 1,2022 , and made capital contributions of $125,000(G),$175,000(P), and $250,000(W), 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 P; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for G; (b) 40% for P; and (c) 40% for W. Net income was $200,000 in 2022 and $240,000 in 2023 . Each partner withdrew $1,500 for personal use every month during 2022 and 2023. What was the amount of interest attributed to P in the income distribution for 2023? a. $17,500. b. 517,450 . c. $24,150. d. 525,950 . e. $20,750 Step by Step Solution
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