Fellows and Marshall Are Partners in an Accounting Firm and Share

Multiple Choice

Fellows and Marshall are partners in an accounting firm and share net income and loss equally. Fellows' beginning partnership capital balance for the current year is $185,000, and Marshall's beginning partnership capital balance for the current year is $260,000. The partnership had net income of $350,000 for the year. Fellows withdrew $80,000 during the year and Marshall withdrew $70,000. What is Marshall's return on equity?

A) 54.3%
B) 56.0%
C) 60.3%
D) 78.7%
E) 67.3%