Katherine, alliah, and paulina form a partnership. katherine contributes $150,000. alliah contributes $150,000, and paulina contributes $100,000. their partnership agreement calls for the income or loss division to be based on the ratio of capital investment. if the partnership reports income of $90,000 for its first year of operations, what amount of income is credited to katherine's capital account?

$33,750

Explanation:

The computation of the amount of income which is credited to Katherine's capital account is shown below:

= (Katherine contribution ÷ total contribution) × partnership income

= ($150,000 ÷ $400,000) × $90,000

= $33,750

The total contribution equals to

= Katherine contribution + Alliah contribution + Paulina contribution

= $150,000 + $150,000 + $100,000

= $400,000

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to

answermarket demand;