A Partnership Began Its First Year of Operations with the Following

question 72

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 the balance in Thurman's Capital account at the end of the second year?

• A) $133,380.
• B) $84,760.
• C) $105,690.
• D) $132,860.
• E) $71,760.

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Definitions:

Normalization

The process through which ideas, behaviors, and conditions are made to appear normal, natural, or consistent with societal norms.

Surveillance

The monitoring of behavior, activities, or information for the purpose of influencing, managing, directing, or protecting people.

Hegemony

Hegemony describes the dominance of one social group over others, achieved through cultural, economic, or political means, often seen as natural or normal by the wider society.

Civil Society

The realm of organizations, institutions, and associations situated between the government, business, and the family, emphasizing voluntary participation and civic engagement.