Goodman, Pinkman, and White formed a partnership on January 1, 2023, 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: interest of an amount equal to 10% of the partner’s beginning capital balance for the year; annual compensation of $15,000 to Pinkman; and the remainder of the income or loss to be split among the partners in the following percentages: 20% for Goodman; 40% for Pinkman; and 40% for White. Net income was $200,000 in 2023 and $240,000 in 2024. Each partner withdrew $1,500 for personal use every month during 2023 and 2024. What was the amount of interest attributed to Pinkman in the income distribution for 2024?
Goodman, Pinkman, and White formed a partnership on January 1, 2023, 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:
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interest of an amount equal to 10% of the partner’s beginning capital balance for the year;
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annual compensation of $15,000 to Pinkman; and
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the remainder of the income or loss to be split among the partners in the following percentages:
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20% for Goodman;
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40% for Pinkman; and
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40% for White.
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Net income was $200,000 in 2023 and $240,000 in 2024. Each partner withdrew $1,500 for personal use every month during 2023 and 2024.
What was the amount of interest attributed to Pinkman in the income distribution for 2024?
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