Answer:
a.$46,000
Explanation:
A partner ship account records the transactions related to partnership. All transaction of withdrawal, Profit allocation etc. are recorded to determine the closing balance of each partner.
Ending Capital Balance = Beginning Capital balance + Income allocation for the year - withdrawals
Jordon's Ending Capital Balance = $40,000 + ( $40,000 x 0.5 ) - $14,000
Jordon's Ending Capital Balance = $40,000 + $20,000 - $14,000
Jordon's Ending Capital Balance = $46,000
Prestige pricing is a unique pricing method involving products which would actually generate less overall profit at lower prices than higher prices. As long as the product is views by the public as being "prestigious," it will be in greater demand at the higher price. If the price were lowered, the public opinion of the product would be lower and the product would be seen as less desirable. This results in the product selling less at the lower price than at the higher price.
