Net income was 150000 in 2011 and 180000 in 2012 each


Cloninger, Warren, and Nettles formed a partnership on January 1, 2011, with investments of $100,000, $150,000, and $200,000, respectively.

For division of income, they agreed to

(1) an interest of 10% of the beginning capital balance each year;
(2) an annual compensation of $10,000 to Warren; and
(3) sharing the remainder of the income or loss in a ratio of 20% for Cloninger and 40% each for Warren and Nettles.

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.
What was Warren's capital balance at the end of 2011?

$150,000
$160,000
$165,000
$201,000
$213,000

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Financial Accounting: Net income was 150000 in 2011 and 180000 in 2012 each
Reference No:- TGS0777847

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