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 Young's total share of net income for the second year?
A) $17,160 income.
B) $4,160 income.
C) $19,760 income.
D) $17,290 income.
E) $28,080 income.

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 Young's total share of net income for the second year?
A) $17,160 income. 
B) $4,160 income. 
C) $19,760 income. 
D) $17,290 income. 
E) $28,080 income.

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 Young's total share of net income for the second year?
A) $17,160 income. 
B) $4,160 income. 
C) $19,760 income. 
D) $17,290 income. 
E) $28,080 income.

A Partnership Began Its First Year of Operations with the Following