The net income of the Travis and Tucker partnership is $125000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of $100000 (Travis) and $150000 (Tucker) have been allocated. At the beginning of the year Travis's Capital account had a balance of $250000 and Tucker's Capital account had a balance of $325000. What is the balance of Tucker's Capital account at the end of the year after profits and losses have been distributed?

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The net income is $125,000. After salary allowances of $100,000 (Travis) and $150,000 (Tucker), the remaining profit is $125,000 - $100,000 - $150,000 = -$25,000. This loss is shared equally, so each partner's capital account is reduced by $12,500. Tucker's capital account balance at the end of the year is $325,000 - $12,500 = $312,500.

The Net Income of the Travis and Tucker Partnership Is