Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year?
A) $124,000
B) $144,000
C) $192,000
D) $176,000
E) $134,000

Question

Quizplus · Accepted Answer

Regina Harrison's capital balance at the beginning of the year can be calculated by:
Beginning balance + Additional contributions - Withdrawals - Losses = Ending balance
Let x be her capital balance at the beginning of the year. Then:
x + 10,000 - 20,000 - 16,000 = 150,000
x - 26,000 = 150,000
x = 176,000
Therefore, her capital balance at the beginning of the year was $176,000. Answer choice D is the correct answer.

Regina Harrison Is a Partner in Pressed for Time