A partnership begins its first year with the following capital balances:
Alexander, Capital $ 36,000
Bertrand, Capital 46,000
Coloma, Capital 56,000
The articles of partnership stipulate that profits and losses be assigned in the following manner:
Each partner is allocated interest equal to 8 percent of the beginning capital balance.
Bertrand is allocated compensation of $16,000 per year.
Any remaining profits and losses are allocated on a 3:3:4 basis, respectively.
Each partner is allowed to withdraw up to $5,000 cash per year.
Assuming that the net income is $46,000 and that each partner withdraws the maximum amount allowed, what is the balance in Coloma's capital account at the end of the year?
Multiple Choice
$68,064
$63,064
$57,376
$60,480