Norr and Caylor established a partnership on January 1, 2019. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000. For both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following procedure for sharing profits and losses: 12% interest on the yearly beginning capital balance $10 per hour of work that can be billed to the partnership's clients the remainder divided in a 3:2 ratio The Articles of Partnership specified that each partner should withdraw no more than $1,000 per month, which is accounted as direct reduction of that partner’s capital balance. For 2019, the partnership's income was $70,000. Norr had 1,000 billable hours, and Caylor worked 1,400 billable hours. In 2020, the partnership's income was $24,000, and Norr and Caylor worked 800 and 1,200 billable hours respectively. Each partner withdrew $1,000 per month throughout 2019 and 2020. Complete the following: Determine the amount of net income allocated to each partner for 2019. Determine the balance in both capital accounts at the end of 2019. Determine the amount of net income allocated to each partner for 2020. (Round all calculations to the nearest whole dollar). Determine the balance in both capital accounts at the end of 2020 to the nearest dollar.

Read the case study “Travel Solutions” at the end of Chapter 7 (page 491)  of your textbook, follow the following directions and then respond to the case study questions A case study is a puzzle to be solved, so before reading and answering the specific questions, develop your proposed solution by following these five steps: Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module, which apply to the situation described in the case study. Record the facts from the case study which are relevant to the principles and concepts of the module. The case may have extraneous information not relevant to the current module. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers. Describe in some detail the actions that would address or correct the situation. Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks. Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case. Case Study Questions: What is your assessment of the situation at Travelink at the end of the case? What are the underlying problems in the organization? If you found yourself in Will or Robert’s situation, what would you do? Why? If Will and Robert both decide to stay and try to advance needed changes, what changes would you recommend they focus on and how would you recommend they go about it? Would you, for example, share Will’s documentation of the problems within the company? Why or why not? Have you ever been in a situation where you were a recipient of change and things went poorly? How did it affect you and others in the organization?