Cox,North,and Lee Form a Partnership

Multiple Choice

Cox,North,and Lee form a partnership.Cox contributes $180,000,North contributes $150,000,and Lee contributes $270,000.Their partnership agreement calls for a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally.If the partnership reports income of $174,000 for its first year,what amount of income is credited to Lee's capital account?

A) $58,000.
B) $57,000.
C) $61,500.
D) $55,500.
E) $48,000.