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1)W. Bell and C. Quirk started a partnership in 20...

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1)W. Bell and C. Quirk started a partnership in 2012. Because Bell contributed a larger amount toward the partnership at inception, the partnership agreement specified the following split of profits and losses in a two-phase allocation. The first allocation would split profits and losses in proportion to the partners' relative capital balances up to 20% of those balances. The remainder would be split evenly. At the end of the first year, the partnership had a net loss of $40,000. Partners' capital balances were as follows: At the end of 2012, after the year's net loss was allocated, what was the updated balance in Quirk's capital account 2) In 2012, a partnership was formed by three peopleA. Adams, L. Davalos, and R. Zimmerman. The partnership agreement called for profits to be split evenly. The three partners' initial capital contributions were as follows: During the first year, the following transactions took place: What was the balance in Davalos' capital account at the end of the year?

 

Paper#9599 | Written in 18-Jul-2015

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