Reference no: EM132784843

Question - Assume that there was a net loss for the first year of operation of $26,000 with net income in the second year.

Each partner withdrew $13,000 per year.

The remainder was to be assigned on a 5:2:3 basis to Yanni, Easton, and Thune, respectively.

Each partner was to be allocated with interest equal to 10 % of the capital balance at the beginning of the year.

A partnership began its first year of operations with the following capital balances: Yanni, capital $143,000 Easton, capital $104,000 Thune, capital $143,000 The Articles of Partnership stipulated that profits and losses be allocated in the following manner:

1. What is Yanni's share of the net loss for the first year?

A. $3,900 loss.

B. $9,100 loss.

C. $10,400 loss.

D. $11,700 loss.

2. What is Easton's capital balance at the end of the first year?

A. $120,900.

B. $118,300.

C. $96,500.

D. $80,600.