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Joey Gladstone receives an annual salary of $30,000 from a business he started with one partner. Based on the information given below, which one of the following partnership income distribution methods would provide Joey Gladstone with the highest income for the year? Beginning capital balance $100,000 Partnership profit (after salaries) $275,000 Gladstone's salary $ 30,000 Applicable interest rate 10%
Question 1: Assuming that Gladstone made no withdrawals (including salary) during the year, what would be the balance in Gladstone's capital account at year's end if Gladstone were to receive 40% of partnership profit after receiving his salary?
Point A. $110,000
Point B. $210,000
Point C. $140,000
Point D. $240,000
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