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16 August, 01:34

Shue, a partner in the Financial Brokers Partnership, has a 30 percent share in partnership profits and losses. Shue's capital account had a net decrease of $100,000 during 20X8. During 20X8, Shue withdrew $240,000 as withdrawals and contributed equipment valued at $50,000 to the partnership. What was the net income of the Financial Brokers Partnership for 20X8?

A. $633,334

B. $466,666

C. $300,000

D. $190,000

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  1. 16 August, 01:48
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    C. $300,000

    Explanation:

    Shue Capital Account:

    contribution 50,000

    partnership income x 30%

    withdrawals (240,000)

    change in capital account (100,000)

    50,000 + Shue profits - 240,000 = - 100,000

    Shue profit = 240,000 - 100,000 - 50,000

    Shue profit = 90,000

    Partnership profit:

    90,000 / 0.30 = 300,000
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