4. Fox, Gre, and How are partners with average capital balances during 2016 of $120,000, $60,000, and
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4. Fox, Gre, and How are partners with average capital balances during 2016 of $120,000, $60,000, and $40,000, respectively. Partners receive 10 percent interest on their average capital balances. After deducting salaries of $30,000 to Fox and $20,000 to How, the residual profit or loss is divided equally. In 2016, the partnership sustained a $33,000 loss before interest and salaries to partners. By what amount should Fox’s capital account change?
a $7,000 increase b $11,000 decrease c $35,000 decrease d $42,000 increase
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Related Book For
Advanced Accounting
ISBN: 9781292214597
13th Global Edition
Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith
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