The net income of the Torrey and Gore partnership IS $250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of $200,000 (Torrey) and $150,000 (Gore) have been allocated. At the beginning of the year, Torrey's Capital account had a balance of $500,000 and Gore's Capital account had a balance of $650,000. What Is the balance of Gore's Capital account at the end of the year after profits and losses have been distributed?
The net income of the Torrey and Gore partnership IS $250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of $200,000 (Torrey) and $150,000 (Gore) have been allocated. At the beginning of the year, Torrey's Capital account had a balance of $500,000 and Gore's Capital account had a balance of $650,000. What Is the balance of Gore's Capital account at the end of the year after profits and losses have been distributed?
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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