Derek and Kent Are Partners

question 74

Essay

Derek and Kent are partners. At the beginning of the current year, Derek's capital account is
$30,000, while Kent's is $50,000. The partners decided to allocate income with 10% interest on capital balances at the beginning of the period and divide the balance equally. Net income for the current year, 2015, is $80,000. Each partner withdrew $15,000 for personal use during the year. Determine the amount of income that each partner will be allocated.

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Definitions:

Endoderm

The innermost layer of cells or tissue of an embryo in early development, which gives rise to the lining of the digestive and respiratory systems.

Periderm

A protective tissue in plants, making up the outer layer of the bark in woody plants.

Yolk Sac

An extra-embryonic membrane in early embryonic development that provides nutrition to the developing embryo.

Prostate Gland

A gland in males located below the bladder surrounding the urethra, secreting fluid that is a component of semen.