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  3. red, blue, and green formed a partnership on janua

Red, Blue, and Green formed a partnership on January 1,2020, and made capital contributions ...

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Accounting

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 Blue's capital balance at the end of 2021?
$300,660.
$337,500.
$324,810.
$361,650.
$342,810.
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