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.

Understand the factors that cause shifts in demand curves for goods and services.

Identify the characteristics and outcomes of goods being substitutes or complements.

Differentiate between a change in demand and a change in quantity demanded.

Recognize how consumer income changes impact the demand for normal and inferior goods.