A partnership begins its first year with the following capital balances:
Alfred, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ | 50,000 |
Bernard, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 60,000 | |
Collins, Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 70,000 |
The articles of partnership stipulate that profits and losses be assigned in the following manner:
• Each partner is allocated interest equal to 5 percent of the beginning capital balance.
• Bernard is allocated compensation of $18,000 per year.
• Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.
• Each partner is allowed to withdraw up to $5,000 cash per year.
Assuming that the net income is $60,000 and that each partner withdraws the maximum amount allowed, what is the balance in Collins capital account at the end of that year?
a. $70,800 .
b. $86,700 .
c. $73,500 .
d. $81,700
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.