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A&B form a partnership with A being the limited partner (LP)who will invest $150,000 and B being the general partner (GP). The group finds a property for $700,000 and takes a mortgage for $550,000, interest only at 6%. They agree to a 90/10 split on the profits and distributions while the property is owned by the group.   Assume the following:   Gross Income- $125,000 LESS VACANCY- $6,250 LESS OPERATING EXPENSES - $27,000   What is the capital account of investor A (the LP)     $87,000     $97,125     $139,875     $150,000

A&B form a partnership with A being the limited partner (LP)who will invest $150,000 and B being the general partner (GP). The group finds a property for $700,000 and takes a mortgage for $550,000, interest only at 6%. They agree to a 90/10 split on the profits and distributions while the property is owned by the group.   Assume the following:   Gross Income- $125,000 LESS VACANCY- $6,250 LESS OPERATING EXPENSES - $27,000   What is the capital account of investor A (the LP)     $87,000     $97,125     $139,875     $150,000

FINANCIAL ACCOUNTING
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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A&B form a partnership with A being the limited partner (LP)who will invest $150,000 and B being the general partner (GP). The group finds a property for $700,000 and takes a mortgage for $550,000, interest only at 6%. They agree to a 90/10 split on the profits and distributions while the property is owned by the group.

 

Assume the following:

 

Gross Income- $125,000

LESS VACANCY- $6,250

LESS OPERATING EXPENSES - $27,000

 

What is the capital account of investor A (the LP)
   

$87,000
   

$97,125
   

$139,875
   

$150,000
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