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Question #3: Price, Waterhouse, and Coopers formed a partnership on January 1, 2017, and made capital contributions of $100,000 (Price), $150,000 (Waterhouse), and $200,000 (Coopers),
Question #3: Price, Waterhouse, and Coopers formed a partnership on January 1, 2017, and made capital contributions of $100,000 (Price), $150,000 (Waterhouse), and $200,000 (Coopers), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of that partner's beginning capital balance for the year; (2) annual compensation of $10,000 to Waterhouse; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Price: (b) 40% for Waterhouse; and (c) 40% for Coopers. Net income was $150,000 in 2017 and $180,000 in 2018. Each partner withdrew $1,000 for personal use every month during 2017 and 2018. Determine the ending capital balance for each partner as of the end of each of the two years 2017 and 2018. Show all your work
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