William and Smith formed a partnership with Scott who contributed $100,000, William who contributed $30,000, and Smith
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William and Smith formed a partnership with Scott who contributed $100,000, William who contributed $30,000, and Smith who contributed $70,000. Their partnership agreement called for the earnings division to be based on the ratio of capital investments. If the partnership had a profit of $475,000 for its first year of operation, how much would be credited to Smith's capital account?
Multiple Choice
$130,000
$70,000
$345,000
$166,250
$475,000
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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