Feldt is a partner in Feldt & Dodson Company. Feldt's share of the partnership income is $18,600 and her average partnership equity is $155,000. Her partner return on equity equals 8.33.

Question

Quizplus · Accepted Answer

The partner return on equity is calculated by dividing the partnership income by the average partnership equity. $18,600 divided by $155,000 equals approximately 12%, not 8.33.

Feldt Is a Partner in Feldt & Dodson Company