Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $150,000 for its first year, what amount of income is credited to Cox's capital account?
A. $45,000.
B. $60,000.
C. $64,286.
D. $50,000.
E. $36,000.
Answer: A
Business
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