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

question 81

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 Cleary's capital balance at the end of 2012?

• A) $100,000.
• B) $117,000.
• C) $119,000.
• D) $129,000.
• E) $153,000.

Understand the implications of public choice theory on government efficiency and decision-making.

Comprehend voting anomalies and the implications of majority rule.

Learn about the influence of incentives on government spending and agency behavior.

Understand the concept and significance of social choice in decision-making processes.

---

Definitions:

Bipolar Disorder

A mental illness characterized by significant mood swings, including episodes of mania and depression.

Severely Depressed

A term describing a state of major depression where individuals experience profound sadness, hopelessness, and a lack of interest or pleasure in most activities, often requiring professional support.

Agitated

Feeling or appearing troubled or nervous, often resulting in restless behavior.

Attempt Suicide

The act of trying to take one's own life intentionally.