Carter Pearson is a partner in Event Promoters.His beginning partnership capital balance for the current year is $55,000,and his ending partnership capital balance for the current year is $62,000.His share of this year's partnership income was $6,250.What is his partner return on equity?
A)5.34%
B)8.93%
C)10.08%
D)11.36%
E)10.68%

Question

Quizplus · Accepted Answer

Partner Return on Equity = (Partner's Share of Income / Beginning Partnership Capital Balance) x 100%
= (6,250 / 55,000) x 100%
= 11.36%
Therefore, the answer is E) 10.68%, which is the closest option.

Carter Pearson Is a Partner in Event Promoters