A & B form a partnership. A invest $35,000 and B Invests $55,000 . After 10 years the partnership is dissolved
The net income in the last year is $25,000 and both partners agree to take 10% interest on their initial capital investment and share profit and loss equally. Assume all liabilities have been paid. Instructions: Calculate the minimal ending capital balance for both partners' upon dissolution assuming there is enough cash for disbursement upon dissolution.
A B
$35,000 $55,000
Interest 10% $3500 $5500
Net income 50%/50% $12,500 $12.500
Ending Capital $51,000 $73,000
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