jahubb
Jan 31, 2008, 02:16 PM
:eek: I'm so confused, someone please help!
M and C are partners. At the beginning of the current year, M's capital account is $ 30,000
An C's is $ 50,000. M and C decided to allocate income with 10% interest on capital balances at the beginning of the period and divide the balance equally. Net income for the current year is $ 80,000. Each partner withdrew $ 15,000 for personal use during the year. Determine the amount of income that will be allocated to each partner.
A. M $30,000: C, $50,000
B. M $32,000: C, $32,500
C. M $35,000: C, $37,500
D. M $39,000: C, $41,000
Pleas tell me how to solve this problem, you don't have to give me the answer just explain how to figure it out, Thank You!!
M and C are partners. At the beginning of the current year, M's capital account is $ 30,000
An C's is $ 50,000. M and C decided to allocate income with 10% interest on capital balances at the beginning of the period and divide the balance equally. Net income for the current year is $ 80,000. Each partner withdrew $ 15,000 for personal use during the year. Determine the amount of income that will be allocated to each partner.
A. M $30,000: C, $50,000
B. M $32,000: C, $32,500
C. M $35,000: C, $37,500
D. M $39,000: C, $41,000
Pleas tell me how to solve this problem, you don't have to give me the answer just explain how to figure it out, Thank You!!