The Mayer and Rodin partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $400000 for Mayer and $200000 for Rodin. At the beginning of the year Mayer's Capital account had a balance of $800000 while Rodin's ' Capital account had a balance of $700000. Net income for the year was $500000. The balance of Rodin's Capital account at the end of the year after closing is

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First, we need to calculate the total salary allowances which is $400,000 for Mayer and $200,000 for Rodin, making a total of $600,000. This will be deducted from the net income of $500,000 to give a total profit of $-100,000.
Next, we need to calculate each partner's share in the profits, which will be equal since the partnership agreement stipulates that profits and losses will be shared equally. Therefore, each partner's share in the profits will be $-50,000.
We can then add each partner's share in the profits to their beginning Capital account balance to get their ending Capital account balance:
Mayer's ending Capital account balance = $800,000 - $50,000 = $750,000
Rodin's ending Capital account balance = $700,000 - $50,000 = $650,000
Therefore, the balance of Rodin's Capital account at the end of the year after closing will be $650,000 + $200,000 (salary allowance) = $850,000 (Option C).

The Mayer and Rodin Partnership Agreement Stipulates That Profits and Losses