The Following Information Is Available on PDC Enterprises, a Partnership

question 165

Multiple Choice

The following information is available on PDC Enterprises, a partnership, for the most recent fiscal year: Total partnership capital at beginning of the year $1,080,000
Partnership net income for the year $1,250,000
Withdrawals by partners during the year $320,000
Additional investments by partners during the year $ 70,000
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) $466,000.
• B) $402,000.
• C) $416,000.
• D) $544,000.
• E) $388,000.

---

Definitions:

Referral Approach

An approach that uses a third person’s name as a reference to approach the buyer.

Mutual Acquaintance

Someone known by both parties in a conversation or negotiation, sometimes leveraged to build trust or establish rapport.

Core Principles

Fundamental beliefs or values that serve as the foundation for the systems, practices, and objectives of an organization or individual.