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

question 2

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 Wasser's share of income for 2008?

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

---

Definitions:

Alarm Reaction

The initial stage in the body's response to stress, involving the immediate activation of the nervous and endocrine systems.

Professional Baseball Players

Athletes who have the skills and capabilities to play baseball at a competitive level, often participating in major leagues.

Longevity

The length of life or duration of an individual's existence, often used in discussions about factors that contribute to a longer and healthier life.

Peak Income

The highest level of income earned by an individual or population during their lifetime or over a specific period of economic measurement.