Zheng Invested $100,000 and Murray Invested $200,000 in a Partnership

question 14

Multiple Choice

Zheng invested $100,000 and Murray invested $200,000 in a partnership.They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Zheng and a $40,000 per year salary allowance to Murray,plus an interest allowance on the partners' beginning-year capital investments at 10%,with the balance to be shared equally.Under this agreement,the shares of the partners when the partnership earns $105,000 in income are:

• A)$52,500 to Zheng;$52,500 to Murray.
• B)$35,000 to Zheng;$70,000 to Murray.
• C)$57,500 to Zheng;$47,500 to Murray.
• D)$42,500 to Zheng;$62,500 to Murray.
• E)$70,000 to Zheng;$60,000 to Murray.

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Definitions:

White Racial Identity

The concept of identifying or understanding oneself in terms of race, specifically within the context of being white, often involving awareness of privilege and issues of racism.

Color-Blind Framework

An ideology or approach that professes not to see racial differences and thus does not acknowledge the impact of race and racism in society.

Melting Pot

A metaphor for a society where people from diverse backgrounds assimilate and merge into a single, cohesive culture.

American Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.