Van and Shapiro Formed a Partnership $\$ 30,000$ Is Paid to Van

question 28

Essay

Van and Shapiro formed a partnership. As part of the formation, Van contributed equipment whose cost to her was $60,000, with accumulated depreciation for tax purposes of $36,000. The partnership awarded her $40,000 towards her partnership interest for the equipment. The partnership assumed $10,000 of Shapiro's personal debts when she was admitted into the partnership.
After one year of operation, the partnership had the following partial trial balance:
Partners split profits as follows:
(1) A salary of $\$ 30,000$ is paid to Van.
(2) Remaining profits (or losses) are split $40 \%$ to Van, the remainder to Shapiro. Required:
Calculate the two partners' ending capital balances.

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