What is the effect on individual as capital account

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Reference no: EM133494922

Question: Two individuals are in a partnership, Their profit sharing agreement specifies that Individual A should receive an annual salary of $50,000, and Individual B should receive an annual salary of $25,000. The remaining profits and losses are to be divided equally between them.

The partnership earned a net income of $100,000 for the year-ending December 31, 2014.

What is the effect on Individual A's capital account?

Reference no: EM133494922

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