Question - Cleary, Wasser, and Nolan formed a partnership on January 2011, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to
- Interest of 10% of the Beginning Capital Balance each year.
- Annual compensation of $10,000 to Wasser.
- Sharing the remainder of the income/loss using a ratio of 20% for Cleary, 40% for Wasser, and 40% for Nolan.
Net income was $150,000 in 2011, and $180,000 in 2012.
Each partner withdrew $1,000 for personal use every month during 2011 and 2012.
1. How much of the 2011 Net Income was allocated to Cleary in 2011?
2. What was Cleary's capital balance at the end of 2012?
3. What was Wasser's capital balance at the end of 2012?
4. What was Nolan's capital balance at the end of 2012?