test 14-16 bank - Cleary, Wasser, and Nolan formed a...

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Cleary, Wasser, and Nolan formed a partnership on January 1, 2010, 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 2010 and $180,000 in 2011. Each partner withdrew $1,000 for personal use every month during 2010 and 2011. 1. award: 0 out of 0 points What was Nolan's total share of net income for 2010? $63,000. $53,000. $58,000. $29,000. $51,000. references 2. award: 0 out of 0 points What was Cleary's capital balance at the end of 2010? $100,000. $117,000. $119,000. $129,000. $153,000. references 3. award: 0 out of 0 points What was the amount of interest attributed to Wasser for 2011?
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$17,600 $18,800 $20,100 $17,800 $30,100 references 4. award: 0 out of 0 points What was Cleary's total share of net income for 2011? $34,420. $75,540. $65,540. $70,040. $61,420. The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2011, were as follows: The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: $25,000. $30,000. $37,500. $75,000. $90,000. ($150,000/.8 = $187,500. $187,500 - $150,000 = $37,500 to invest) A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.
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test 14-16 bank - Cleary, Wasser, and Nolan formed a...

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