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In: Accounting

Saul Goodman, Jesse Pinkman, and Walter White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively.

Saul Goodman, Jesse Pinkman, and Walter 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 White’s total share of net income for 2021?

            A)    $99,060. 
            B)    $126,900.
            C)    $62,160.
            D)    $93,060.
            E)    $96,000.

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