Cox,North,and Lee form a partnership.Cox contributes $180,000,North contributes $150,000,and Lee contributes $270,000.Their partnership agreement calls for a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally.If the partnership reports income of $150,000 for its first year,what amount of income is credited to North's capital account?
A)$50,000.
B)$63,500.
C)$61,500.
D)$47,500.
E)$45,000.

Question

Quizplus · Accepted Answer

The Answer of Cox,North,and Lee form a partnership.Cox contributes $180,000,North contributes $150,000,and Lee contributes $270,000.Their partnership agreement calls for a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally.If the partnership reports income of $150,000 for its first year,what amount of income is credited to North's capital account?
A)$50,000.
B)$63,500.
C)$61,500.
D)$47,500.
E)$45,000.

Cox,North,and Lee Form a Partnership