Baldwin and Tanner Formed a Partnership

question 68

Essay

Baldwin and Tanner formed a partnership.Baldwin's initial capital account balance was $125,000 and Tanner's was $105,000.They agreed to share income and loss as follows: Baldwin 40%,Tanner 60%.Income was $102,000 in year 1 and $150,000 in year 2.Assume they each withdrew $10,000 per year.Calculate the capital balances for Baldwin and Tanner at the end of year 2.

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Definitions:

Needs Reduction

The process of minimizing or eliminating requirements or deficiencies to achieve a state of stability or satisfaction.

Secure Base

A concept in attachment theory referring to the relationship or environment that provides an individual, especially a child, with safety and security, enabling them to explore and learn.

Secondary Emotions

Complex emotions that arise from the synthesis of primary emotions and social learning, such as shame, guilt, and pride, which require a degree of self-awareness and cognitive development to experience.

Physical Changes

Alterations in the body's structure or functioning, often occurring during growth, development, or aging.