Multiple Choice
The partnership agreement between Allen and Barry states that profit and loss sharing arrangements will be based on the ratio of the partner's capital balances. Allen and Barry have capital balances of $90 000 and $60 000 respectively at the end of the accounting period. If profit for the period is $48 000, the profit allocations of each of the partners is:
A) Allen $24 000; Barry $24 000.
B) Allen $28 800; Barry $19 200.
C) Allen $30 000; Barry $18 000.
D) unable to be calculated from the information provided.
Correct Answer:
Verified
Correct Answer:
Verified
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