During the Current Year,Jacob,Alicia,and Shawn,who Are Partners in the JAS

question 22

Multiple Choice

During the current year,Jacob,Alicia,and Shawn,who are partners in the JAS Company,had average capital balances of $57,000,$49,000,and $64,000,respectively.The partners share profits and losses by allowing a 12% return on average capital,with any remaining income or loss divided in a ratio of 5:3:2.If the company's income for the current year was $73,800,Shawn's capital account would increase by:

• A)$14,760
• B)$18,360
• C)$22,440
• D)$27,784

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Definitions:

Annualized Return

The geometric average amount of money earned by an investment each year over a given time period.

Boeing

A global American corporation engaged in designing, manufacturing, and selling airplanes, rotorcraft, rockets, satellites, missiles, and telecommunications equipment around the world.

Random Walk

A theory suggesting that the price movements of securities are unpredictable and random, making it impossible to consistently predict their future movements based on past trends.

Stock Prices

The current market price at which a share of a company is bought or sold.