A Partnership Began Its First Year of Operations with the Following

question 13

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 Eaton'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.

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Definitions:

Delay

A period of time before an event or action takes place.

Aversive Event

An unpleasant or harmful event or stimulus that an organism seeks to avoid or escape.

Avoidance Response

A behavior aimed at preventing an unpleasant or harmful event before it occurs.

Imitate

To copy or mimic the actions, appearance, or speech of another person or thing, often to learn or practice a specific behavior or skill.