A Partnership Began Its First Year of Operations with the Following

question 9

Multiple Choice

A partnership began its first year of operations with the following capital balances:
Young, Capital: $143,000
Eaton, Capital: $104,000
Thurman, Capital: $143,000
The Articles of Partnership stipulated that profits and losses be assigned in the following manner:
Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.
Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.
The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.
Each partner withdrew $13,000 per year.
Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.
What was Young's total share of net loss for the first year?

• A) $3,900 loss.
• B) $11,700 loss.
• C) $10,400 loss.
• D) $24,700 loss.
• E) $9,100 loss.

---

Definitions:

Chronic Inflammation

A long-term inflammatory response that can last for months or years, often resulting in tissue damage and contributing to the development of various diseases.

Cytokines

A broad category of small proteins important in cell signaling, involved in immune responses and inflammation.

Corticosteroids

A category of steroid hormones synthesized in the adrenal cortex, utilized in medicine to decrease inflammation and inhibit the immune system.

Norepinephrine

A neurotransmitter involved in arousal and the stress response, among other functions, often implicated in mood disorders such as depression.