Howe and Duley’s company is organized as a partnership. At the prior year-end, partnership equity totaled

$150,000 ($100,000 from Howe and $50,000 from Duley). For the current year, partnership net income is $25,000 ($20,000 allocated to Howe and $5,000 allocated to Duley), and year-end total partnership equity is $200,000 ($140,000 from Howe and $60,000 from Duley). Compute the total partnership return on equity and the individual partner return on equity ratios.

AppendixLO1