Mano Capital Jan1, Ballance: $20,000. Investment: $5000. Sept 3. Perm. Reduction

White Capital: Jan 1: Ballance $18,000

Hopkins Capital Jan 1. Ballance $24,000. Sept 5. Investment $4,000

For the year 20XX, the partnership reported a net income of $25,800.

If interest of 7% is to be allowed on the partners Capital account balances at the beginning of the year, the amount of net income remaining for distribution is A. $25,800. C. $6,438. B. $21,460. D. $4,340.

The first $10,000 of the net income is to be divided in the ratio of 5/3/2, and the remainder is to be distributed equally. Mano would receive A. $5,000.00. C. $8,266.67. B. $5,266.67. D. $10,266.67.