Compute the total partnership return on equity


Response to the following problem:

Gilson and Lott's company is organized as a partnership. At the prior year-end, partnership equity totaled $300,000 ($200,000 from Gilson and $100,000 from Lott). For the current year, partnership net income is $50,000 ($40,000 allocated to Gilson and $10,000 allocated to Lott), and year-end total partnership equity is $400,000 ($280,000 from Gilson and $120,000 from Lott).

Compute the total partnership return on equity and the individual partner return on equity ratios.

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Accounting Basics: Compute the total partnership return on equity
Reference No:- TGS02945275

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