Red, Blue, and Green formed a partnership on January 1,2020, and made capital contributions of...
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Red, Blue, and Green formed a partnership on January 1,2020, and made capital contributions of $125,000 (Red), $175,000 (Blue), and $250,000 (Green), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the partner's beginning capital balance for the year: (2) annual compensation of $15,000 to Blue; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Red; (b) 40% for Blue; and (c) 40% for Green. Net income was $200,000 in 2020 and $240,000 in 2021. Each partner withdrew $1,500 for personal use every month during 2020 and 2021. What was the total capital balance for the partnership at December 31, 2020? $696.000. $604,000. $804,000. $750,000. $496,000
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