A partnership begins its first year of operations with the following capital balances:

Winston, Capital	$	72,000
Durham, Capital		62,000
Salem, Capital		72,000

According to the articles of partnership, all profits will be assigned as follows:

• Winston will be awarded an annual salary of $20,000 with $10,000 assigned to Salem.
• The partners will be attributed interest equal to 10 percent of the capital balance as of the first day of the year.
• The remainder will be assigned on a 5:2:3 basis, respectively.
• Each partner is allowed to withdraw up to $5,000 per year.

The net loss for the first year of operations is $28,000 and net income for the subsequent year is $30,000. Each partner withdraws the maximum amount from the business each period. What is the balance in Winstons capital account at the end of the second year?

Multiple Choice

• $67,240

• $54,900

• $75,390

• $72,240