Question - Assume that there are three partners in a partnership, A, B, and C. Partners A and B each began the year with a capital account of $750,000. Partner C was admitted to the partnership during the year with a capital contribution of $450,000. The Partnership Agreement provides for a salary to Partner C of $75,000 and interest on the respective Capital Accounts of $37,500/$37,500/$16,875, respectively. During the year, the partners withdrew $30,000/$30,000/$15,000 and the allocation of profit was $173,250/$173,250/$86,625, respectively.
Prepare the Statement of Partners' Capital for the year.