Chad Forrester Is a Limited Partner in a Sports Management

Multiple Choice

Chad Forrester is a limited partner in a sports management firm.During the previous year his return on partnership equity was 16%.The beginning balance in his capital account was $450,000 and his partnership net income for this year was $75,000.What was the balance in Chad's capital account at the end of last year?

A) $525,000
B) $937,500
C) $487,500
D) $468,750
E) $37,500