What amount of earnings would be created


Brown, Jones and Smith formed a partnership with Brown contributing $60,000, Jones contributing $50,000 and Smith contributing $40,000. Their partnership agreement called for earnings' division to be based on the ratio of capital investments. If the partnership had earnings of $74,000 for its first year of operation, what amount of earnings (rounded to the nearest dollar) would be credited to Smith's capital account?

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Accounting Basics: What amount of earnings would be created
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