On January 1, 2013, the opening balances in the Ho-Hum partnership were Ho, $12,000 and Hum, $14,000. During the year, the partnership earned $80,000. Profit is split equally between the partners. Ho worked a significant amount during the year and withdrew $50,000. Hum was mainly a silent partner and withdrew only $10,000. At the end of the year, after all accounts have been closed, the balance in Hum's capital account was

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The partnership earned $80,000, which is split equally between Ho and Hum, giving each $40,000. Hum's initial balance was $14,000, so after adding his share of the profit, it becomes $54,000. After withdrawing $10,000, Hum's ending balance is $44,000.

On January 1, 2013, the Opening Balances in the Ho-Hum