Yeon, Tyun, and Soob are partners with an average capital balance during the year of 120,000, 60,000, and 40,000. Partners receive 10% interest on their average capital balances. After deducting salaries of 30,000 to Yeon and 20,000 to Tyun, the residual profit or loss is divided equally. The partnership sustained a 33,000 loss before interest and salaries to partners. By what amount should Yeon’s capital account change?
Yeon, Tyun, and Soob are partners with an average capital balance during the year of 120,000, 60,000, and 40,000. Partners receive 10% interest on their average capital balances. After deducting salaries of 30,000 to Yeon and 20,000 to Tyun, the residual profit or loss is divided equally. The partnership sustained a 33,000 loss before interest and salaries to partners. By what amount should Yeon’s capital account change?
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Yeon, Tyun, and Soob are partners with an average capital balance during the year of 120,000, 60,000, and 40,000. Partners receive 10% interest on their average capital balances. After deducting salaries of 30,000 to Yeon and 20,000 to Tyun, the residual profit or loss is divided equally. The
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