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A partnership begins its first year with the following capital balances: Alfred, Capital $ 68,000 Bernard, Capital 78,000 Collins, Capital 88,000 The articles of partnership

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

Alfred, Capital $ 68,000
Bernard, Capital 78,000
Collins, Capital 88,000

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

Each partner is allocated interest equal to 10 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 $5,000 cash per year.

Assuming that the net income is $78,000 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

a. $108,840

b. $113,840

c. $96,060

d. $96,800

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