Benson and Orton Are Partners Who Share Income in the Ratio

question 71

Multiple Choice

Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $60,000 and $40,000, respectively. Ramsey is admitted to the partnership and is given a 10% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?

• A) $44,800
• B) $35,200
• C) $20,000
• D) $16,000

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Definitions:

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Organizations formed by workers from related fields that work together to protect their collective interests and negotiate with employers over wages, benefits, and working conditions.

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The efficiency at which goods or services are produced, typically measured by the output per unit of input.