The Following Information Is Available on TGR Enterprises, a Partnership

question 155

Multiple Choice

The following information is available on TGR Enterprises, a partnership, for the most recent fiscal year: Total partnership capital at beginning of the year $180,000 Partnership net income for the year $150,000
Withdrawals by partners during the year $120,000 Additional investments by partners during the year $ 60,000
There are three partners in TGR Enterprises: Tracey, Gregory and Rodgers. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively. Compute the ending capital balances of the three partners.

• A) Tracey = $84,000; Gregory = $102,000; Rodgers = $84,000.
• B) Tracey = $204,000; Gregory = $102,000; Rodgers = $204,000.
• C) Tracey = $60,000; Gregory = $30,000; Rodgers = $60,000.
• D) Tracey = $90,000; Gregory = $90,000; Rodgers = $90,000.
• E) Tracey = $108,000; Gregory = $54,000; Rodgers = $108,000.

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Definitions:

Straight-Line Depreciation

A method of calculating depreciation of an asset by evenly spreading its cost over the expected useful life.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for the effects of taxes, reflecting the net cost of capital to the company.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, which can vary by income level and jurisdiction.

Avoidable Costs

Avoidable costs are expenses that can be eliminated if a particular decision is made or if a certain activity is stopped.