The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Hawk invested an additional $10,000. During the year, Hawk and Martin withdrew $86,000 and $68,000, respectively, and net income for the year was $258,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement of partners' equity for 2010 would show what amount in the capital account for Hawk on December 31, 2010?

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Hawk's capital account starts at $160,000. He invests an additional $10,000, bringing it to $170,000. The net income of $258,000 is divided equally (since no division is specified), giving Hawk $129,000. After withdrawals of $86,000, Hawk's capital account is $170,000 + $129,000 - $86,000 = $213,000.

The Capital Accounts of Hawk and Martin Have Balances of $160,000