5. Parducho had a 500,000 capital balance for eight months and a 650,000 balance for four months. Burgos had a 380,000 capital balance for five months and a 500,000 balance for seven months. How much of the year's 800,000 profit should Parducho receive if profits and losses are distributed based on the ratio of average capital balance А. 360,000 В. 387,500 C. 440,000 D. 453,200

5. Parducho had a 500,000 capital balance for eight months and a 650,000 balance for four months. Burgos had a 380,000 capital balance for five months and a 500,000 balance for seven months. How much of the year's 800,000 profit should Parducho receive if profits and losses are distributed based on the ratio of average capital balance А. 360,000 В. 387,500 C. 440,000 D. 453,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

5. Parducho had a 500,000 capital
balance for eight months and a
650,000 balance for four months.
Burgos had a 380,000 capital balance
for five months and a 500,000 balance
for seven months. How much of the
year's 800,000 profit should Parducho
receive if profits and losses are
distributed based on the ratio of
average capital balance
А. 360,000
В. 387,500
С. 440,000
D. 453,200

6. W. Alexis and X. Cassandra form a
partnership and have capital balances
of 100,000 and 200,000 respectively. If
they agree to admit V. Lucas into the
partnership, how much will he have to
invest to have a 4 interest?
А. 50,000
В. 75,000
С. 100,000
D. 200,000

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