Partners Brian, Josh, and Chad Have Average Capital Balances of $11,000

question 96

Multiple Choice

Partners Brian, Josh, and Chad have average capital balances of $11,000, $10,000, and $90,000, respectively. Net income for the year is $20,000. Salary allowances are $19,000 for Brian and $8,000 for Josh. Chad gets 10% interest on his capital balance with the remainder being divided at a 1:1:2 ratio for Brian, Josh, and Chad, respectively. What is Brian's capital balance after distributing the net income? (Assume no change in capital balances during the year.)

• A) $26,000 credit balance
• B) $5,000 debit balance
• C) $16,000 debit balance
• D) $11,000 debit balance

---

Definitions:

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Greatest Threat

The largest or most severe danger or challenge facing an individual, group, or institution.

Iroquois Confederacy

A historic union of six Native American tribes living in the northeastern United States, known for their democratic governing system.

Early Eighteenth Century

Refers to the period from 1700 to 1729, a time of significant political, economic, and cultural developments in Europe and its colonies.