A Partnership Began Its First Year of Operations with the Following

question 61

Multiple Choice

A partnership began its first year of operations with the following capital balances:

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 to Young, Eaton, and Thurman, respectively.
Each partner withdrew $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.
What was Thurman's total share of net loss for the first year?

• A) $3,900 loss.
• B) $11,700 loss.
• C) $10,400 loss.
• D) $24,700 loss.
• E) $9,100 loss.

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Definitions:

Temperament

The way individuals respond to their external and internal environments.

Piaget's Phases

A theory of cognitive development that outlines four stages in a child's intellectual development, formulated by psychologist Jean Piaget.

Cognitive Development

The process by which individuals acquire and understand knowledge through thought, experience, and the senses.

Freud's Developmental

Refers to Sigmund Freud's psychosexual stages of development, which are oral, anal, phallic, latency, and genital stages, each associated with specific conflicts and influences on personality.