During the first year, Bob and Kim partnership in SE 2 earned an income of $5,000. Assume

Question:

During the first year, Bob and Kim partnership in SE 2 earned an income of $5,000. Assume the partners agreed to share income and losses in the ratio of the beginning balances of their capital accounts. How much income should be transferred to each Capital account?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...