a. $235,000 b. $214,000 c. $151,400 d. $274,000 e. $244,00
AGF partnership begins its first year of operation with the following capital balances and
Able Capital $ 60,000 (20%)
Green Capital $80,000 (30%)
Frank Capital $ 100,000 (50%)
Each partner is allocated interest of 5% on beginning capital balances.
Green is allocated salary of $20,000 for the full year. Frank is allocated salary of $10,000 for the full year. Able is not allocated salary.
Each partner has drawings of $30,000 in the first year.
Assume that partnership net income in the first year is $300,000. What is the balance in Frank's capital account at the end of the year
| a. |
$235,000 |
|
| b. |
$214,000 |
|
| c. |
$151,400 |
|
| d. |
$274,000 |
|
| e. |
$244,000
|
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