Partnership agreement called for income-loss division


Rice, Hepburn, and DiMarco formed a partnership with Rice contributing $60,000, Hepburn contributing $50,000 and DiMarco contributing $40,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $75,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to DiMarco's capital account?

a) $20,000

b) $25,000

c) $30,000

d) $40,000

e) $75,000

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Partnership agreement called for income-loss division
Reference No:- TGS046049

Expected delivery within 24 Hours