Jordon and Heidi Share Income Equally

question 78

Multiple Choice

Jordon and Heidi share income equally. For the current year, the partnership net income is $40,000. Jordon made withdrawals of $14,000, and Heidi made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Jordon, Capital, $40,000; Heidi, Capital, $58,000. Jordon's apital account balance at the end of the year is

• A) $68,000
• B) $54,000
• C) $74,000
• D) $46,000

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Definitions:

T-Bill

Treasury Bill, a short-term government security issued at a discount from the face value and pays no interest before it matures.

Yields

The income return on an investment, such as the interest or dividends received, usually expressed as an annual percentage.

T-Bill

Short for Treasury Bill, a short-term government securities issued with a maturity of less than one year, considered a safe investment.

Interest Rates

They are the charges lenders impose on borrowers for the use of financial assets, restated here to highlight their critical role in finance and borrowing.