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Partner a Has a Capital Balance of $40,000 and Devotes

Question 82

Multiple Choice

Partner A has a capital balance of $40,000 and devotes full time to the partnership. Partner B has a capital balance of $50,000 and devotes half time to the partnership. If no other information is available regarding distributions, in what ratio is net income to be divided?


A) 4:5
B) 1:1
C) 5:4
D) 1:2

Correct Answer:

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