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A partnership was formed on January 5 of the current year with the following capital balances: The Articles of Partnership stipulated that profits and losses
A partnership was formed on January 5 of the current year with the following capital balances: The Articles of Partnership stipulated that profits and losses are assigned as follows: Each partner is allocated interest equal to 10% of the beginning capital balance. Donald is allocated a $40,000 salary Any remaining profits/losses are allocated on a 2:3:5 basis, respectively. Each partner is allowed to withdraw up to $10,000 per year. Net income of $150,000 was earned by the business in the current year. Assuming that each partner withdraws the maximum amount, how much income is allocated to Donald in the current year? A) $73,000 B) $33,000 c) $22,000 D) $55,000 E) $81,000 Assuming that each partner withdraws the maximum amount, what is each partner's capital account balance at the end of the current year
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