A partnership began its first year of operations with the following capital balances: The Articles of Partnership stipulated that profits and losses be assigned in the following manner:Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman.Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.Each partner withdrew $13,000 per year.Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.What was Thurman's total share of net loss for the first year?
A) $3,900 loss.
B) $11,700 loss.
C) $10,400 loss.
D) $24,700 loss.
E) $9,100 loss.

Question

A partnership began its first year of operations with the following capital balances:  The Articles of Partnership stipulated that profits and losses be assigned in the following manner:Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman.Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.Each partner withdrew $13,000 per year.Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.What was Thurman's total share of net loss for the first year?
A) $3,900 loss. 
B) $11,700 loss. 
C) $10,400 loss. 
D) $24,700 loss. 
E) $9,100 loss.

Quizplus · Accepted Answer

The Answer of A partnership began its first year of operations with the following capital balances:  The Articles of Partnership stipulated that profits and losses be assigned in the following manner:Young was to be awarded an annual salary of $26,000 and $13,000 salary was to be awarded to Thurman.Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.Each partner withdrew $13,000 per year.Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.What was Thurman's total share of net loss for the first year?
A) $3,900 loss. 
B) $11,700 loss. 
C) $10,400 loss. 
D) $24,700 loss. 
E) $9,100 loss.

A Partnership Began Its First Year of Operations with the Following