The average capital balances of partners Bridget and Emily are $3,000 and $6,000,respectively.Bridget and Emily work full time in the business.The business earned net income of $12,000 for the period.The partners have agreed to share earnings based upon the percentage of original investment.Bridget's share of the net income is:

Question

Quizplus · Accepted Answer

To find Bridget's share of the net income, we need to determine the percentage of the total original investment that her capital balance represents.

Total original investment = $3,000 + $6,000 = $9,000

Bridget's percentage share of the total investment = ($3,000 / $9,000) * 100% = 33.33%

Her share of the net income = 33.33% * $12,000 = $4,000.

Therefore, the correct answer is A) $4,000.

The Average Capital Balances of Partners Bridget and Emily Are