Multiple Choice
William and Smith formed a partnership with Scott who contributed $100,000,William who contributed $30,000,and Smith who contributed $70,000.Their partnership agreement called for the earnings division to be based on the ratio of capital investments.If the partnership had a profit of $475,000 for its first year of operation,how much would be credited to Smith's capital account?
A) $166,250
B) $70,000
C) $130,000
D) $345,000
E) $475,000
Correct Answer:
Verified
Correct Answer:
Verified
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