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Goshia [24]
2 years ago
14

Cox, North, and Lee form a partnership. Cox contributes $201,000, North contributes $167,500, and Lee contributes $301,500. Thei

r partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $182,000 for its first year, what amount of income is credited to Lee's capital account
Business
1 answer:
Masteriza [31]2 years ago
3 0

Answer:

Lee's portion of income =$81, 900

Explanation:

<em>The income or loss would be shared according to the ratio of capital contributed. The ratio is the proportion of capital contribute per partner to the total pool of capital.</em>

Lee;s portion of income

= lees capital/total capital × reported income

= 301,500/(201,000+167,500+ 301,500)  × 182,000

= $81, 900

Lee's portion of income =$81, 900

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2 years ago
When an MNC needs to finance a portion of a foreign project within the foreign country, the best method to account for a foreign
Misha Larkins [42]

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3 0
3 years ago
Sadie and Sam share income equally. For the current year, the partnership net income is $40,000. Sadie made withdrawals of $14,0
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Answer:

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8 0
3 years ago
Price elasticity of demand refers to the ratio of the:
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The ratio of the percentage change in the quantity demanded of a good to a percentage change in its price refers to the price elasticity of demand.

 

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