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

question 65

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 capital balance at the end of 2008?

• A)$139,420.
• B)$246,000.
• C)$276,540.
• D)$279,440.
• E)$304,040.

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Definitions:

Kangaroo Rats

Small rodents native to North America, adapted to arid environments with remarkable water conservation mechanisms and hopping locomotion.

Kidneys

Pair of organs located in the abdomen of vertebrates, primarily involved in filtering waste products from the blood and excreting them in urine.

Conserve Water

The process of saving water to minimize usage and maintain its availability.

Reabsorbed

The process by which substances are taken back into the body tissues, particularly during the filtration process in the kidneys.