Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 and $245,000. Their partnership agreement provides that Whitman is to receive a guaranteed salary of $100,000, and that remaining profits after the salary are to be shared in a 2:3 ratio. Partnership operations for the year 2020 resulted in income of $75,000, before distributions to partners. Whitmans salary is paid in cash during the year, but there are no other withdrawals or capital changes. Assume full implementation.

Required

a. Compute the balance of each partners capital account at December 31, 2020.

Balance at December 31, 2020
Whitman	$Answer
Greene	$Answer

b. Compute the balance of each partners capital account at December 31, 2020, assuming partnership income was $150,000.

Balance at December 31, 2020
Whitman	$Answer
Greene	$Answer