Multiple Choice
Partners Brian, Josh, and Chad have average capital balances of $11,000, $10,000, and $90,000, respectively. Net income for the year is $20,000. Salary allowances are $19,000 for Brian and $8,000 for Josh. Chad gets 10% interest on his capital balance with the remainder being divided at a 1:1:2 ratio for Brian, Josh, and Chad, respectively. What is Brian's capital balance after distributing the net income? (Assume no change in capital balances during the year.)
A) $26,000 credit balance
B) $5,000 debit balance
C) $16,000 debit balance
D) $11,000 debit balance
Correct Answer:
Verified
Correct Answer:
Verified
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