Russ,Adam,and Brent,who are partners in the Bowinkles Company,had ending capital balances for the current year equal to $95,000,$43,000,and $62,000,respectively.If the partners share income and losses based on the ratio of these ending capital balances,Brent's share of $95,000 in partnership income would be:

Question

Quizplus · Accepted Answer

The total ending capital balance for all partners is $95,000 + $43,000 + $62,000 = $200,000.

To find Brent's share of the partnership income, we first need to determine the ratio of his ending capital balance to the total:

Brent's ratio = $62,000 ÷ $200,000 = 0.31

This means that Brent is entitled to 31% of the partnership income.

To calculate Brent's share of the $95,000 income, we multiply the income by his ratio:

Brent's share = $95,000 x 0.31 = $29,450

Therefore, the answer is B, $29,450.

Russ,Adam,and Brent,who Are Partners in the Bowinkles Company,had Ending Capital