The Following Information Is Available on PDC Enterprises, a Partnership

question 8

Multiple Choice

The following information is available on PDC Enterprises, a partnership, for the most recent fiscal year: $$\begin{array} { l r } \text { Total partnership capital at beginning of the year } & \$ 1,080,000 \\\text { Partnership net income for the year } & \$ 1,250,000 \\\text { Withdrawals by partners during the year } & \$ 320,000 \\\text { Additional investments by partners during the year } & \$ 70,000\end{array}$$ There are three partners in TGR Enterprises: Pearson, Darling and Cathay. At the end of the year, the partners' capital accounts were in the ratio of 2:2:1, respectively. Compute the ending capital balances of Cathay.

• A)$544,000.
• B)$416,000.
• C)$402,000.
• D)$466,000.
• E)$388,000.

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Definitions:

Compounded Monthly

The process of adding interest to a principal amount each month, where each month's interest is computed based on the total of the original principal and the accumulated interest.

Home Improvement Loan

A type of loan intended to finance the renovation or repair of a home.

Equal Monthly Payments

Payments of equal amount made each month over a specified period, commonly associated with loans or financing plans.

Compounded Monthly

Interest calculation method where the interest gains are added to the principal each month, affecting subsequent interest accruals.