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Paula and Penny Have Capital Balances of $120 000 and $150

Question 18

Multiple Choice

Paula and Penny have capital balances of $120 000 and $150 000 respectively and use the variable capital balances method. If their profit/loss sharing ratios are Paula 40% and Penny 60%, the balance of Penny's capital balance after a profit of $60 000 is:


A) $114 000
B) $150 000
C) $174 000
D) $186 000

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