The following information is available regarding John Smith's capital account in Technology Consulting Group, a general partnership, for a recent year: What is Smith's partner return on equity during the year in question?
A) 36.6%
B) 34.7%
C) 10.8%
D) 11.4%
E) 55.7%

Question

Quizplus · Accepted Answer

Smith's partner return on equity is calculated by dividing the net income attributed to Smith by his average capital balance for the year. The correct calculation results in a return on equity of 36.6%.

The Following Information Is Available Regarding John Smith's Capital Account