A Partnership Began Its First Year of Operations with the Following

question 87

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 Young's total share of net income for the second year?

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

---

Definitions:

Signal Present

In signal detection theory, the condition in which the signal or target stimulus is indeed present.

Signal-Detection Theory

A framework for understanding how decisions are made under conditions of uncertainty, emphasizing the role of sensory processes and decision criteria.

Sensory Processes

The operations involved in receiving and representing stimuli from the external environment through the sense organs.

Signal-Detection Theory

A psychological theory explaining how individuals detect a signal amidst noise, focusing on the decision-making process in the presence of uncertainty.