Cleary wasser and nolan formed a partnership on january 1


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 balance at the end of 2012?

A $117,000.

B $100,000.

C $153,000.

D $119,000.

E $129,000.

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Cleary wasser and nolan formed a partnership on january 1
Reference No:- TGS01698243

Expected delivery within 24 Hours