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

Alfred, Capital	$	32,000
Bernard, Capital		42,000
Collins, Capital		52,000

The articles of partnership stipulate that profits and losses be assigned in the following manner:

• Each partner is allocated interest equal to 6 percent of the beginning capital balance.
• Bernard is allocated compensation of $12,000 per year.
• Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.
• Each partner is allowed to withdraw up to $4,000 cash per year.

Assuming that the net income is $42,000 and that each partner withdraws the maximum amount allowed, what is the balance in Collins capital account at the end of that year?

Multiple Choice

• $60,096

• $53,364

• $64,096

• $55,120