On January 1, 2019, CJ, Maris, and Cecil formed a partnership. CJ put in USD60,000, Maris put in USD60,000, and Cecil put in USD40,000. CJ will be the store manager and will work 40 hours per week in the store. Maris will work 20 hours per week at the store, while Cecil will not. During 2019, each partner withdrew 40% of his or their income distribution. If there was no income distribution to a partner, there were no cash withdrawals. The partnership agreement provides for (a) a salary of USD40,000 to CJ and USD20,000 to Maris, (b) interest on beginning capital balances at a rate of 10%, and (c) any remaining income or loss is to be shared by CJ 40%, Maris 35%, and Cecil 25%. Compute and determine Maris's ending capital balance. Show complete solution and explanation.
On January 1, 2019, CJ, Maris, and Cecil formed a partnership. CJ put in USD60,000, Maris put in USD60,000, and Cecil put in USD40,000. CJ will be the store manager and will work 40 hours per week in the store. Maris will work 20 hours per week at the store, while Cecil will not. During 2019, each partner withdrew 40% of his or their income distribution. If there was no income distribution to a partner, there were no cash withdrawals. The partnership agreement provides for (a) a salary of USD40,000 to CJ and USD20,000 to Maris, (b) interest on beginning capital balances at a rate of 10%, and (c) any remaining income or loss is to be shared by CJ 40%, Maris 35%, and Cecil 25%. Compute and determine Maris's ending capital balance. Show complete solution and explanation.
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