Answer:
32.35%
Explanation:
Calculation for What is Smith's partner return on equity during the year in question
First step is to calculate the Ending partner equity
Ending partner equity = $32,000 + $11,000 - $7,000
Ending partner equity = $36,000
Now let calculate the partner return on equity
Partner return on equity= $11,000 / (($32,000 + $36,000)/2)
Partner return on equity= $11,000/($68,000/2)
Partner return on equity= $11,000/$34,000
Partner return on equity= 32.35%
Therefore Smith's partner return on equity during the year in question will be 32.35%
