Rice, Hepburn, and DiMarco Formed a Partnership with Rice Contributing

question 83

Multiple Choice

Rice, Hepburn, and DiMarco formed a partnership with Rice contributing $60,000, Hepburn contributing $50,000 and DiMarco contributing $40,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $75,000 for its first year of operation, what amount of income (rounded to the nearest thousand) would be credited to DiMarco's capital account?

• A) $20,000.
• B) $25,000.
• C) $30,000.
• D) $40,000.
• E) $75,000.

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Definitions:

ROI

Return on Investment, a metric used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Investment Opportunity

A situation or venture that has the potential to generate a return on investment.

Average Operating Assets

The mean worth of resources employed in the functioning of a company throughout a given timeframe.

Sales

The transactions involving the exchange of goods or services for money, considered the primary revenue source for a business.