Table 12-13 Burns and Allan Have Formed a Partnership and Invested $40,000

question 79

Essay

Table 12-13
Burns and Allan have formed a partnership and invested $40,000 and $60,000, respectively. They have agreed to share profits as follows:
1) An annual allocation to Burns of $20,000 and to Allan of $10,000 based on service
2) The next $15,000 is to be allocated according to their original capital contributions to the partnership.
3) The remainder is to be allocated 5:4 respectively
-Refer to Table 12-13.Assuming that the business earns $135,000:
1_allocate the income to Burns and Allan.
2_calculate the balance of each partner's capital account.

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Definitions:

Defensive Maneuvers

Psychological strategies used unconsciously to protect oneself from anxiety or guilt by denying or distorting reality.

Splitting

A defense mechanism commonly observed in patients with borderline personality disorder where individuals view others or themselves as all good or all bad, lacking the ability to integrate the positive and negative qualities of people and situations.

Lifestyle Analysis

An assessment that examines an individual's routines, habits, and behaviors to identify patterns that may impact health and well-being.

Object-relations Therapy

A form of psychotherapy focusing on understanding and treating the ways in which early relationships with primary caregivers influence an individual's current emotional and interpersonal functioning.