On January 1st 2020 the PSST partnership had the following capital accounts: Schiff $510,000 Schumer $600,000...

On January 1st 2020 the PSST partnership had the following capital accounts:
	Schiff	$510,000
	Schumer	$600,000
	Pelosi	$700,000
	Trump	$1,000,000

The partnership agreement states the following:
	Partners would receive 10% interest on their beginning of the year capital accounts
	Schiff receives a salary of $10,000 per year
	Trump receives a salary of $50,000 per year
	Pelosi takes $24000 per year out of her capital account for cosmetics
	Trump takes $30,000 per year out of his capital account for orange hair dye
	profits are shared equally
	Losses are: 40% Schumer 30% Schiff 20% Pelosi and 10% Trump

	In 2020 the partnership reported income of $800,000 [before interest and partner salaries]
	In 2021 the partnership reported income of $200,000 [before interest and partner salaries]
	In 2022 the partnership reported income of $750,000 [before interest and partner salaries ]

	REQUIRED:
		for 2020,2021 and 2022 determine
		a) each partners share of partnership income
		b) each partners ending capital balance.

Expert Solution

ekkarill92 answered 2 years ago

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