REFERENCE: Ref.14_02 a Partnership Began Its First Year of Operations with the with the Following
REFERENCE: Ref.14_02
A partnership began its first year of operations with the following capital balances:
Young,Capital: $143,000
Eaton,Capital: $104,000
Thurman,Capital: $143,000
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 with $13,000 salary assigned 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,respectively.
Each partner was allowed to withdraw up to $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.Assume further that each partner withdrew the maximum amount from the business each year.
-What was Thurman's share of income or 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.
Correct Answer:
Verified
Q17: The dissolution of a partnership occurs
A) only
Q17: REFERENCE: Ref.14_01
Cleary,Wasser,and Nolan formed a partnership on
Q18: REFERENCE: Ref.14_01
Cleary,Wasser,and Nolan formed a partnership on
Q20: REFERENCE: Ref.14_01
Cleary,Wasser,and Nolan formed a partnership on
Q23: Which of the following is not a
Q26: Which of the following type of organization
Q27: What was the balance in Young's Capital
Q27: The appropriate format of the January 31,2008
Q34: What was the balance in Eaton's Capital
Q38: What was the balance in Thurman's Capital
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