TB 11-29 William and Smith formed a partnership with ...

William and Smith formed a partnership with Scott who contributed $100,000, William who contributed $30,000, and Smith who contributed $70,000. Their partnership agreement called for the earnings division to be based on the ratio of capital investments. If the partnership had a profit of $475,000 for its first year of operation, how much would be credited to Smith's capital account?

Multiple Choice

• $130,000

• $70,000

• $345,000

• $166,250

• $475,000