David, Chris and John Started Off a Partnership Firm on July

question 60

Multiple Choice

David, Chris and John started off a partnership firm on July 31, 2014. They decided to share profits equally, but also inserted a clause in the partnership agreement whereby any loss suffered would be borne in the ratio 3:2:1. For the year ended December 31, 2014, the firm earned a net income of $45,000. However, for the year ended December 31, 2015, the firm incurred a loss of $60,000. Assuming that John had an initial capital contribution of $40,000 and made no further withdrawals, what is the balance of John's Capital account as of December 31, 2015? (Assume that none of the partners made any further contributions to their capital accounts.)

• A)$45,000
• B)$40,000
• C)$55,000
• D)$35,000

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Definitions:

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Relating to psychosis, characterized by an impaired relationship with reality, which may include delusions and hallucinations.

Allen Memorial Hospital

A psychiatric hospital associated with McGill University in Montreal, Canada, known for its historical involvement in controversial brainwashing experiments during the 1950s and 1960s.

Brain Washing Experiments

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