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A partnership begins its first year with the following capital balances: Alfred, Capital $ 72,000 Bernard, Capital 82,000 Collins, Capital 92,000 The articles of partnership

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

Alfred, Capital $ 72,000
Bernard, Capital 82,000
Collins, Capital 92,000

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 $16,000 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 $82,000 and that each partner withdraws the maximum amount allowed, what is the balance in Collins capital account at the end of that year?

$114,016.

$97,520.

$118,016.

$98,644.

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