The Profit of the Miskell and Leblanc Partnership Is $30,000

question 7

Multiple Choice

The profit of the Miskell and Leblanc partnership is $30,000. The partnership agreement specifies that Miskell and Leblanc have a salary allowance of $8,000 and $12,000, respectively. The partnership agreement also specifies an interest allowance of 10% on capital balances at the beginning of the year. Each partner had a beginning capital balance of $20,000. Any remaining profit or loss is shared equally.
-What is the balance of Leblanc's Capital account at the end of the year after profit has been distributed?

• A) $34,000
• B) $32,000
• C) $37,000
• D) $35,000