Charlene, Derwood, and Elwyn form a partnership. They make no express agreement concerning how profits are to be divided. Of the $30,000 initial capital of the firm, Charlene and Derwood each contributed $12,000. Elwyn contributed $6,000. The partnership had a profit of $15,000 during the first year of operation of the business. Given this information, Derwood's share of the profit will be ________.

A. $10,000
B. $6,000
C. $5,000
D. $12,000


Answer: C

Business

You might also like to view...

What is the most logical explanation for why retailers carry private-label brands?

A) to eliminate the need for competitive advantages B) to encourage transaction marketing C) to support trade promotions D) to earn more profit E) to prevent sales cannibalization

Business

Depreciation expense on factory equipment is part of factory overhead cost

Indicate whether the statement is true or false

Business

If a wholesale manufacturer gets a retail outlet for its goods through merger, this is a horizontal merger

a. True b. False Indicate whether the statement is true or false

Business

List and briefly discuss the two limitations of financial performance measures

What will be an ideal response

Business