A Partnership Is Formed with 4 Partners Named Wells, Bates

question 32

Multiple Choice

A partnership is formed with 4 partners named Wells, Bates, McCollum and Zhang. The partnership agreement specifies that profits and losses are shared in a ratio of 1:1:2:4, respectively. At the end of the first year, the partnership earned profit of $290 000. What amount will be credited to the capital account for McCollum?

• A)$32 222
• B)$72 500
• C)$36 250
• D)$145 000

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Definitions:

Type A Personality

A personality trait characterized by high levels of competitiveness, self-driven ambition, impatience, and a constant sense of urgency.

Competitive

Refers to a situation, environment, or attitude marked by a striving for superiority, success, or winning, often against others.

Hard-Driving

A personality trait characterized by competitiveness, aggression, impatience, and a sense of urgency, often associated with stress and health risks.

Easily Angered

Describes a temperament or disposition characterized by the propensity to become angry quickly or with little provocation.