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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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