Fred and Barney Started a Partnership $\begin{array}{cc} &\text { Fred} && \text { Barney } \\\end{array}$

question 116

Multiple Choice

Fred and Barney started a partnership. Fred invested $17,000 in the business and Barney invested $25,500. The partnership agreement stipulated that profits would be divided as follows: Each partner would receive a 8% return on invested capital with the remaining income being distributed equally between the two partners. Assuming that the partnership earned $38,000 during an accounting period, the amount of income assigned to the two partners would be: $\begin{array}{cc} &\text { Fred} && \text { Barney } \\\end{array}$
A. $\begin{array}{cc} \$15,940 & \$15,260 \\\end{array}$

B. $\begin{array}{cc} \$17,000 & \$21,000 \\\end{array}$

C. $\begin{array}{cc} \$19,000 & \$19,000 \\\end{array}$

D. $\begin{array}{cc} \$18,660 & \$19,340\\\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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