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Bill, and Carrie formed a partnership with Adam contributing $50,000, Bill contributing $30,000, and Carrie contributing $20,000. Their partnership agreement called for the earnings division
Bill, and Carrie formed a partnership with Adam contributing $50,000, Bill contributing $30,000, and Carrie contributing $20,000. Their partnership agreement called for the earnings division to be based on the ratio of 5:4:1 respectfully. If the partnership had a profit of $75,000 for its first year of operation, how much would be credited to Adam's capital account?
$20,000. | ||
$7,500. | ||
$30,000. | ||
$37,500. | ||
$15,000. |
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