Cox, North, and Lee Form a Partnership

question 29

Multiple Choice

Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $150,000 for its first year, what amount of income is credited to Lee's capital account? (Do not round your intermediate calculations.)

• A) $50,000.
• B) $67,500.
• C) $45,000.
• D) $54,000.
• E) $60,000.

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Definitions:

Red Streaks

Visible lines on the skin, often red or purplish, that may indicate an infection or inflammation spreading in the body.

Pallor

A noticeable paleness of the skin often resulting from poor blood circulation or reduced oxygen levels.

Infiltration

The process by which a substance or group gradually enters or permeates an area or system.

Phlebitis

Inflammation of a vein, typically in the leg, which can result from irritation, infection, or the presence of a blood clot.