$150,000 $160,000 $165,000 $201,000 $213,000 Cloninger, Warren, and Nettles form

Question

       $150,000
       $160,000
       $165,000
       $201,000
       $213,000

Cloninger, Warren, and Nettles formed a partnership on January 1, 2011, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to
(1) an interest of 10% of the beginning capital balance each year;
(2) an annual compensation of $10,000 to Warren; and
(3) sharing the remainder of the income or loss in a ratio of 20% for Cloninger and 40% each for Warren and Nettles.
Net income was $150,000 in 2011 and $180,000 in 2012. Each partner withdrew $1,000 for personal use every month during 2011 and 2012.
What was Warren's capital balance at the end of 2011?

Explanation / Answer

D .)) $ 201,000

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