Answer: A: $32,000
Explanation: From the question above, a salary allowance of $5000 was made per month. so for the year, its $5,000*12 = $60,000
The partnership made a net income of $80,000
therefore, $80,000-$60,000 = $20,000 net profit to be divided by the partners = $20,000 /2 = $10,000 each
Trotter made an additional $10,000 investment
he also withdrew $4000 per month for the year= $4000*12 = $48,000
his capital increase during the year:
Net profit = $10,000
Additional Investment = $10,000
Salary allowance less withdrawal = $60,000 - $48,000=$12,000
Total = $32,000.00
