A partnership begins its first year with the following capital balances: Alexander, Capital $38,000 Bertrand, Capital Coloma, Capital 48,000 58,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 10 percent of the beginning capital balance. Bertrand 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 $3,000 cash per year. Assuming that the net income is $48,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year? Multiple Choice $62,360 $70,040 $63,800 $67,040

A partnership begins its first year with the following capital balances: Alexander, Capital $38,000 Bertrand, Capital Coloma, Capital 48,000 58,000 The articles of partnership stipulate that profits and losses be assigned in the following manner: • Each partner is allocated interest equal to 10 percent of the beginning capital balance. Bertrand 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 $3,000 cash per year. Assuming that the net income is $48,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year? Multiple Choice $62,360 $70,040 $63,800 $67,040

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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