The partnership of Angel Investor Associates began operations on January 1, 2012, with contributions from two partners as follows: Scott Wilson $120000 Michael Goforth $80000 1. In early January,...

The partnership of Angel Investor Associates began operations on January 1, 2012, with contributions from two partners as follows:
Scott Wilson $120000

Michael Goforth $80000

1.In early January, Lance McGinnis is admitted to the partnership by contributing $50,000 cash for a 20% interest.

2.Net income of $250,000 was earned in 2012. In addition, Scott Wilson received a salary allowance of $45,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting McGinnis.

3.The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.