Jackson and Campbell Have Capital Balances of $100,000 and $300,000

question 100

Multiple Choice

Jackson and Campbell have capital balances of $100,000 and $300,000 respectively. Jackson devotes full time and Campbell one-half time to the business. Determine the division of $150,000 of net income in ratio of capital balances.

• A) $75,000 and $75,000
• B) $37,500 and $112,500
• C) $100,000 and $50,000
• D) $50,000 and $100,000

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Definitions:

Integration

The process of combining or incorporating parts into a whole, often used in the contexts of social inclusion and the combination of different societal groups.

Assimilation

The process by which a person or group acquires the social and psychological characteristics of another group.

Culture

A set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Static

Refers to something that is fixed, unchanging, or lacking in movement.