Cox,North,and Lee Form a Partnership

question 76

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 a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally.If the partnership reports income of $174,000 for its first year,what amount of income is credited to Lee's capital account?

• A)$58,000.
• B)$57,000.
• C)$61,500.
• D)$55,500.
• E)$48,000.

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