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Brown invested $200,000 and Freeman invested $150,000 in a partnership. They agreed to an interest allowance on the partners' beginning-year capital investments at 10%, with
Brown invested $200,000 and Freeman invested $150,000 in a partnership. They agreed to an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns $205,000 in income are:
A.
$102,500 to Brown; $102,500 to Freeman. |
B.
$117,143 to Brown; $87,857 to Freeman. |
C.
$122,500 to Brown; $82,500 to Freeman. |
D.
$105,000 to Brown; $100,000 to Freeman. |
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