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

question 12

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 Nolan's share of income for 2008?

• A)$34,420.
• B)$75,540.
• C)$65,540.
• D)$70,040.
• E)$61,420.

---

Definitions:

Attitude Polarization

The phenomenon where a disagreement becomes more extreme as the differing parties continue to consider more information in support of their respective opinions.

Academically Relevant

Pertaining to or having significance in scholarly education or academic pursuits.

Instrumental Learning

a learning process wherein behavior is modified through reinforcement or punishment in order to achieve a specific goal or outcome.

Social Learning

The acquisition of behaviors, attitudes, or skills through observation and imitation of others within a social context.