E-Z Manufacturing Company is a partnership is a partnership among Yolando Gonzales, Willie Todd, and Linda Yeager. The partnership contract states that partnership profits will be split equally among the three partners. During the current year Gonzales withdrew $25,000. Todd withdrew $23,000, and Yeager withdrew $30,000. Net income of E-Z Manufacturing Company amounted to $180,000.
a. Calculate each partner's share of net income for the period.
b. Describe the effects , if any, that partnership operations would have on the individual tax returns of the partners.
c. Prepare a statement of partners' equity for the year. Assume that the partners' capital accounts had beginning balances of $50,000, $60,000, and $40,000 for Gonzales, Todd, and Yeager respectively