A partnership begins its first year with the following capital balances: Arthur, Capital $ 36,000 Baxter, Capital 46,000 Cartwright, Capital 56,000 The articles of

A partnership begins its first year with the following capital balances:

Arthur, Capital $ 36,000

Baxter, Capital 46,000

Cartwright, Capital 56,000

The articles of partnership stipulate that profits and losses be assigned in the following manner:

• Each partner is allocated interest equal to 8 percent of the beginning capital balance.

• Baxter is allocated compensation of $16,000 per year.

• Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.

• Each partner is allowed to withdraw up to $5,000 cash per year.

Assuming that the net income is $46,000 and that each partner withdraws the maximum amount allowed, what is the balance in Cartwright’s capital account at the end of that year?

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