Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, 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 2010 and $180,000 in 2011. Each partner withdrew $1,000 for personal use every month during 2010 and 2011.
1.What was Wasser\'s total share of net income for 2010? (answer should be $63,000)
2. What was Nolan\'s capital balance at the end of 2010?(answer should be $246,000)
3.What was wasser\'s total share of net income for 2011? (answer should be $75,000)
please show your work- thank you
Solution
Year 2011
.
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Cleary- Wasser- and Nolan formed a partnership on January 1- 2010- wit.docx
1. Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, 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 2010 and $180,000 in 2011. Each
partner withdrew $1,000 for personal use every month during 2010 and 2011.
1.What was Wasser's total share of net income for 2010? (answer should be $63,000)
2. What was Nolan's capital balance at the end of 2010?(answer should be $246,000)
3.What was wasser's total share of net income for 2011? (answer should be $75,000)
please show your work- thank you
Solution
Year 2011
Year 2010
Net Income 150000
Less Interest Paid 45000
Less Compensation 10000
Profit Available 95000
