Please disregard my answer. I’m just double checking. Thank you QUESTION 1 A par
ID: 2431631 • Letter: P
Question
Please disregard my answer. I’m just double checking. Thank you QUESTION 1 A partnership began its first year of operations with the following capital balances: Young, Capital: $140,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman. Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year. The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively. Each partner withdrew $13,000 per year. Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year. What was Young's total share of net loss for the first year? O $13.000 loss. O $3,900 loss. $11,700 loss. O $9,100 loss ?$1 1,850 loss.Explanation / Answer
Answer. $11,850 Loss Young Eaton Thurman Total Net Income (Loss) (26,000.00) Salary to Partners 26,000.00 - 13,000.00 39,000.00 Interest Paid to Partners 14,000.00 10,400.00 14,300.00 38,700.00 Balance (103,700.00) Divided Between partners - 5:2:3 (51,850.00) (20,740.00) (31,110.00) (103,700.00) Total (11,850.00) (10,340.00) (3,810.00)