Paul and Peggy's company is organized as a partnership. At the prior year-end, Paul's equity balance was $352,000 and Peggy's was $256,000. For the current year, partnership net income is $137,000 ($77,000 allocated to Paul and $60,000 allocated to Peggy); withdrawals are $87,000 ($45,000 for Paul and $42,000 for Peggy). Compute the total partnership return on equity and the individual partner return on equity ratios.

AACSB: Analytic

AICPA BB: Industry AICPA FN: Measurement Difficulty: Medium Learning Objective