ACC 401 Chapter 9 Quiz PROBLEM ONE Cleary, Wasser, and Nolan formed a partnership on January 1, 2006, with investments of $100,000, $150,000, and $200,000 respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of the income or loss in a ratio of 20% for Cleary, and 40% each for Wasser and Nolan. Net income was $150,000 in 2006 and $180,000 in 2007. Each partner withdrew $1,000 for personal use every month during 2006 and 2007. DETERMINE EACH PARTNER'S: A. INCOME SHARE FOR 2006 AND 2007