The Following Information Is Available on PDC Enterprises, a Partnership

The following information is available on PDC Enterprises, a partnership, for the most recent fiscal year: Total partnership capital at beginning of the year $1,080,000
Partnership net income for the year $1,250,000
Withdrawals by partners during the year $320,000
Additional investments by partners during the year $ 70,000
There are three partners in TGR Enterprises: Pearson, Darling and Cathay. At the end of the year, the partners' capital accounts were in the ratio of 2:2:1, respectively. Compute the ending capital balances of Cathay.

A) $466,000.
B) $402,000.
C) $416,000.
D) $544,000.
E) $388,000.

Correct Answer:

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