The following information is available on Stewart Enterprises, a partnership, for the most recent fiscal year: There are three partners in Stewart Enterprises: Stewart, Tedder and Armstrong. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively. Compute the ending capital balances of the three partners.
A) Stewart = $108,000; Tedder = $54,000; Armstrong = $108,000.
B) Stewart = $90,000; Tedder = $90,000; Armstrong = $90,000.
C) Stewart = $204,000; Tedder = $102,000; Armstrong = $204,000.
D) Stewart = $84,000; Tedder = $102,000; Armstrong = $84,000.
E) Stewart = $60,000; Tedder = $30,000; Armstrong = $60,000.

Question

Quizplus · Accepted Answer

The ratio of the partners' capital accounts is 2:1:2 for Stewart, Tedder, and Armstrong, respectively. Without knowing the total capital, we can still determine that Stewart and Armstrong each have twice the capital of Tedder. Option A correctly reflects this ratio with Stewart and Armstrong each having $108,000 and Tedder having $54,000.

The Following Information Is Available on Stewart Enterprises, a Partnership