Reference no: EM132936043

Problem 1: On May 1, 2010, Cassie, Kiara and Loisa are partners with capital balances of $500,000, $300,000 and $400,000 respectively. They share profits and losses according to their capital balances. Loisa died on this date. They have determined that the net income earned as of this date is $325,000. However, inventories in the amount of $40,000 has been considered worthless but was not considered in the determination of net income. Income earned for the year ended December 31, 2010 is $760,000. The articles of partnership declared that in the case of death of a partner, the remaining partners may continue to use the demised partner's fund until the end of the year provided he/she will be paid 18% interest from the date of his/her date. How much will be paid to the estate of Loisa?