AaBbucbc AaBbCcDc AaB 1 Normal 1 No Spac.. Headin Paragraph Topic: Accounting fo

Question

AaBbucbc AaBbCcDc AaB 1 Normal 1 No Spac.. Headin Paragraph Topic: Accounting for the Formation of a Partnership Shue, a partner in the Financial Brokers Partnership, has a 30 percent share in partnership profits and losses. Shue's capital account had a net decrease of $100,000 during 20X8. During 20x8, Shue withdrew $240,000 as withdrawals and contributed equipment valued at $50,000 to the partnership. What was the net income of the Financial Brokers Partnership for 20X8? 12. A. $633,334 B. $466,666 c. $300,000 D. $190,000 AACSB: Analytic AICPA FN: Measurement Blooms: Understana

Explanation / Answer

Answer: C. $ 300,000.

Shue has a 30 % share in the partnership.

Net Profit of the firm = $ 90,000 / 0.30 = $ 300,000.

$ Share of Profit ( Balancing Figure) 90,000 Capital Contribution 50,000 Less: Withdrawals (240,000) Net Decrease during the year (100,000)

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