During 2010,Schmidt invested $75,000 and Baldwin invested $90,000 in a partnership.They agreed that Baldwin would get a salary allowance of $30,000 and they would share any remaining income or loss equally.During 2010 the partnership earned net income of $300,000 and they each withdrew $12,000 from the partnership.Which of the following statements is correct?
A)Schmidt Capital at the end of 2010 is $213,000.
B)Schmidt Capital at the end of 2010 is $210,000.
C)Baldwin Capital at the end of 2010 is $243,000.
D)Baldwin Capital at the end of 2010 is $255,000.
E)Total Capital at the end of 2010 has increased by $300,000.

Question

Quizplus · Accepted Answer

Baldwin: $90,000 +30,000 +135,000 - 12,000 = $243,000

During 2010,Schmidt Invested $75,000 and Baldwin Invested $90,000 in a Partnership.They