Fred and Barney Started a Partnership $\begin{array}{cc} &\text { Fred} && \text { Barney } \\\end{array}$

Multiple Choice

Fred and Barney started a partnership. Fred invested $20,000 in the business and Barney invested $32,000. The partnership agreement stipulated that profits would be divided as follows: Each partner would receive a 15% return on invested capital with the remaining income being distributed equally between the two partners. Assuming that the partnership earned $38,000 during an accounting period, the amount of income assigned to the two partners would be: $\begin{array}{cc} &\text { Fred} && \text { Barney } \\\end{array}$
A. $\begin{array}{cc} \$20,500 & \$17,500 \\\end{array}$

B. $\begin{array}{cc} \$20,000 & \$18,000 \\\end{array}$

C. $\begin{array}{cc} \$19,000 & \$19,000 \\\end{array}$

D. $\begin{array}{cc} \$18,100 & \$19,900\\\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D