1.The party to receive a distribution of principal from an estate is legally called a(n):
2.Cleary, Wasser, and Nolan formed a partnership on January 1, 2012, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was $150,000 in 2012 and $180,000 in 2013. Each partner withdrew $1,000 for personal use every month during 2012 and 2013.
What was Cleary\'s capital account balance at the end of 2013?
3. What was the total capital balance for the partnership at December 31, 2012?
$545,000
Solution
Distribution of Income for 2012:
Capital Account for 2013:
1. Estate Distributee.
2. $139,420
3. $564,000
.
1-The party to receive a distribution of principal from an estate is l.docx
1. 1.The party to receive a distribution of principal from an estate is legally called a(n):
2.Cleary, Wasser, and Nolan formed a partnership on January 1, 2012, with investments of
$100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1)
interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000
to Wasser, and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary, and
40% each for Wasser and Nolan. Net income was $150,000 in 2012 and $180,000 in 2013. Each
partner withdrew $1,000 for personal use every month during 2012 and 2013.
What was Cleary's capital account balance at the end of 2013?
3. What was the total capital balance for the partnership at December 31, 2012?
$545,000
Principal grantee.
Corpus benefitor.
Estate receiver.
Remainderman.
Estate distributee.
Solution
Distribution of Income for 2012:
Capital Account for 2013:
1. Estate Distributee.
2. $139,420
3. $564,000
Cleary Wasser Nolan
2. Capital 100,000 150,000 200,000
Interest 10,000 15,000 20,000
Compensation - 10,000 -
Share in Income 19,000 38,000 38,000
Total Capital 129,000 213,000 258,000
- Drawing 12,000 12,000 12,000
Closing Balance of Capital 117,000 201,000 246,000
