Question

on January 1, don and goldman had a capital balance of $17,000 and $34,000 respectively in their partnership. the net income of the business is $12,000 . what is the share of each partner on the capital basis?

don $4,000 and goldman $8,000
don $6,000 and goldman $6,000
don $2,000 and goldman $10,000
don $ 17,000 and goldman $34,000

Answer 1

@mathmate i believe the answer is B. $6,000 and $6,000?

Answer 2

Don had a share of 1/3 and Goldman had a share of 2/3

Answer 3

What is 1/3 of $12000? What about 2/3?

Answer 4

@rissyroo118 here's a little problem for you!

Suppose @rissyroo118 and @aveline go into business, putting up $600 and $300 initially as a startup (total $900 in capital).
They made $60 in profit.
How much of the $60 do you think @rissyroo118 should get?

Answer 5

i'd think since they are business partners it would be split half and half. but the way your saying it is as if it would be cut into almost 3rds? @mathmate

Answer 6

Yes, sometimes business partners share half-half, if that's what they agree on.

Sometimes, especially when capital is difficult to obtain, they might agree to share "on the capital basis", which is the case for the question.

So I'll leave it to you to finish the question.

Answer 7

@Aveline 1/3 of 12,000 would be 4,000

Answer 8

Exactly.
Now you can go back to your original question, read the question again, and solve! :)

Answer 9

Don and Goldman have uneven shares. Don will get 1/3 of the $12,000 and his partner, Goldman will get 2/3 of the $12,000 ^^

Answer 10

A. $4,000 and $8,000 :)

Answer 11

Correct :)

Answer 12

Oh, so you solve the original question directly, ok. It's correct, as @aveline said!