Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. goodman, pinkman, and white formed a partnership o

Goodman, Pinkman, and White formed a partnership on January 1,2020, and made capital contributions of...

70.2K

Verified Solution

Question

Accounting

image
image
Goodman, Pinkman, and White formed a partnership on January 1,2020, and made capital contributions of $125.000 (Goodman), \$175,000 (Pinkman), and \$250,000 (White), respectively. With respect to the division of income, they agreed to the following: (1) interest of an amount equal to 10% of the that partner's beginning capital balance for the year; (2) annual compensation of $15,000 to Pinkman; and (3) the remainder of the income or loss to be split among the partners in the following percentages: (a) 20% for Goodman; (b) 40% for Pinkman; and (c) 40% for White. 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 Pinkman's total share of net income for 2021 ? Multiple Choice $96,000 $62,160 $135,150 Multiple Choice $96,000. $62,160 $135,150. $101,310 $111,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students