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 Wasser's total share of net income for 2013?
A) $34,420.
B) $75,540.
C) $65,540.
D) $70,040.
E) $61,420.
Correct Answer:
Verified
Q1: Cleary, Wasser, and Nolan formed a partnership
Q2: Cleary, Wasser, and Nolan formed a partnership
Q4: Cleary, Wasser, and Nolan formed a partnership
Q6: Cleary, Wasser, and Nolan formed a partnership
Q7: Cleary, Wasser, and Nolan formed a partnership
Q8: The advantages of the partnership form of
Q9: Cleary, Wasser, and Nolan formed a partnership
Q10: Cleary, Wasser, and Nolan formed a partnership
Q11: Cleary, Wasser, and Nolan formed a partnership
Q17: The dissolution of a partnership occurs
A) only
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents