Multiple Choice
Brown invested $200,000 and Freeman invested $150,000 in a partnership.They agreed to an interest allowance on the partners' beginning-year capital investments at 10%,with the balance to be shared equally.Under this agreement,the shares of the partners when the partnership earns $205,000 in income are:
A) $102,500 to Brown;$102,500 to Freeman.
B) $117,143 to Brown;$87,857 to Freeman.
C) $122,500 to Brown;$82,500 to Freeman.
D) $105,000 to Brown;$100,000 to Freeman.
E) $112,750 to Brown;$92,250 to Freeman.
Correct Answer:

Verified
Correct Answer:
Verified
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