REFERENCE: Ref.14_02 a Partnership Began Its First Year of Operations with the with the Following

question 64

Multiple Choice

REFERENCE: Ref.14_02
A partnership began its first year of operations with the following capital balances:
Young,Capital: $143,000
Eaton,Capital: $104,000
Thurman,Capital: $143,000
The Articles of Partnership stipulated that profits and losses be assigned in the following manner:
Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.
Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.
The remainder was to be assigned on a 5:2:3 basis,respectively.
Each partner was allowed to withdraw up to $13,000 per year.
Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year.Assume further that each partner withdrew the maximum amount from the business each year.
-What was Thurman's share of income or loss for the second year?

• A)$17,160 income.
• B)$4,160 income.
• C)$19,760 income.
• D)$17,290 income.
• E)$28,080 income.

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Definitions:

Phonemes

The smallest units of sound in a language that distinguish one word from another, playing a crucial role in the structure and meaning of words.

Newborns

Infants in their first moments to weeks of life, characterized by rapid developmental changes physically and neurologically.

Native Language

is the first language a person learns in childhood and becomes most fluent in, often used as the primary means of communication in their community.

Phoneme

The smallest unit of sound in a language that can distinguish one word from another, for example, the difference between the "k" sound in "kit" and the "s" sound in "sit."