A Partnership Began Its First Year of Operations with the Following

question 14

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 Young's Capital account at the end of the first year?

• A) $120,900.
• B) $118,300.
• C) $126,100.
• D) $80,600.
• E) $111,500.

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Definitions:

Neurotransmitters

Chemical substances in the nervous system that transmit signals from one neuron to another across synapses.

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, and sleep, among other functions.

Neuroticism

A personality trait characterized by moodiness, anxiety, and emotional instability.

Neurotransmitters

Chemicals found in the nervous system that transmit signals from one neuron to another across synapses.