Fellows and Marshall Are Partners in an Accounting Firm and Share

question 134

Multiple Choice

Fellows and Marshall are partners in an accounting firm and share net income and loss equally.Fellows' beginning partnership capital balance for the current year is $185,000,and Marshall's beginning partnership capital balance for the current year is $260,000.The partnership had net income of $350,000 for the year.Fellows withdrew $80,000 during the year and Marshall withdrew $70,000.What is Marshall's return on equity?

• A)67.3%
• B)60.3%
• C)78.7%
• D)54.3%
• E)56.0%

---

Definitions:

Trademark

A recognizable sign, design, or expression which identifies products or services of a particular source from those of others.

Goodwill

An intangible asset that represents the excess value paid for a company over its net assets at the time of acquisition, reflecting attributes like brand reputation, customer relations, and intellectual property.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing directors or approving acquisitions, indicating a degree of control in the company.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.