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Mary Was a Limited Partner in a Limited Partnership That

Question 57

Multiple Choice

Mary was a limited partner in a limited partnership that had four other limited partners and one general partner.Mary and one other limited partner invested $40,000 each in the partnership,the other two limited partners invested $60,000 each,and the general partner invested $800,000.The partnership agreement made no mention as to the sharing of profits and losses.In the first year of operations the partnership had a net income of $100,000.How much should be allocated to Mary?


A) $25,000
B) $20,000
C) $10,000
D) $5,000
E) $4,000

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