Cleary, Wasser, and Nolan formed a partnership on January 1, 20x7, and made capital contributions...
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Accounting
Cleary, Wasser, and Nolan formed a partnership on January 1, 20x7, and made capital contributions of $100,000 (Cleary), $150,000 (Wasser), and $200,000 (Nolan), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partners beginning capital balance for the year; (2) annual compensation of $10,000 to Wasser; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Cleary; (b) 40% for Wasser; and (c) 40% for Nolan. Net income was $150,000 in 20x7 and $180,000 in 20x8. Each partner withdrew $1,000 for personal use every month during 20x7 and 20x8.
What was Wassers total share of net income for 20x7? (6 points)
Select one:
a.
$51,000
b.
$29,000
c.
$63,000
d.
$53,000
e.
$58,000
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