R, A, and Y are partners with average capital balances during 2020 of $400,000, $200,000 and $150,000 respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of $100,000 to R and $50,000 to A, the residual profit and loss is divided equally. In 2020, the partnership sustained a $99,000 loss after interest and salaries to partners. By what amount should R's capital account change? A. 107,000 B. 67,000 C. 32,000 D. 17,000
R, A, and Y are partners with average capital balances during 2020 of $400,000, $200,000 and $150,000 respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of $100,000 to R and $50,000 to A, the residual profit and loss is divided equally. In 2020, the partnership sustained a $99,000 loss after interest and salaries to partners. By what amount should R's capital account change? A. 107,000 B. 67,000 C. 32,000 D. 17,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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R, A, and Y are partners with average capital balances during 2020 of $400,000, $200,000 and $150,000 respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of $100,000 to R and $50,000 to A, the residual
By what amount should R's capital account change?
A. 107,000 B. 67,000 C. 32,000 D. 17,000
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