REFERENCE: Ref.14_01 Cleary,Wasser,and Nolan Formed a Partnership on January 1,2007,with Investments of Investments

question 16

Multiple Choice

REFERENCE: Ref.14_01
Cleary,Wasser,and Nolan formed a partnership on January 1,2007,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 2007 and $180,000 in 2008.Each partner withdrew $1,000 for personal use every month during 2007 and 2008.
-What was Cleary's capital balance at the end of 2007?

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

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Definitions:

Consistent

In mathematics, particularly in systems of equations, it refers to a system that has at least one solution.

Inconsistent

A term describing systems of equations that have no solution, as their lines or planes do not intersect.

Solutions

The values or sets of values that satisfy the conditions of an equation or inequality.

Infinite Solutions

A condition in which an equation or system of equations has an unlimited number of solutions.