Cleary, Wasser, and Nolan Formed a Partnership on January 1

question 71

Multiple Choice

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 Nolan's capital balance at the end of 2012?

• A) $200,000.
• B) $224,000.
• C) $238,000.
• D) $246,000.
• E) $254,000.

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Definitions:

Scientific Method

A systematic process for conducting research and experimentation, involving observation, hypothesis formulation, experimentation, and conclusion.

Social Validity

The degree to which the goals, procedures, and outcomes of an intervention are acceptable and relevant to the participants and their community.

Non-disturbed Samples

Samples collected from natural or unchanged settings or populations, maintaining their original conditions without human-induced alteration or manipulation.

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The extent to which a test appears to measure what it's supposed to measure, based on subjective judgment.