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

question 44

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 is Cleary's capital account balance at the end of 2008?

• A)$163,420.
• B)$151,420.
• C)$139,420.
• D)$100,000.
• E)$142,000.

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Definitions:

Sp Hybridized

Refers to the linear hybridization state of an atom where one s orbital and one p orbital combine to form two equivalent sp orbitals, often seen in atoms involved in triple bonds.

Labeled Atoms

Atoms in a molecule that are marked or tagged with an isotope to trace them in chemical reactions and processes.

Triethylamine

A strong, organic base, commonly used as a reagent and catalyst in organic synthesis.

Nitrogen Atom

A chemical element with atomic number 7, essential to life on Earth, and a common element in organic compounds.