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23 February, 00:09

Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $29,000 from the partnership. Her share of the partnership's net loss was $20,500 and she made an additional equity contribution of $19,000. Her capital account ended the year at $159,000. What was her capital balance at the beginning of the year

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  1. 23 February, 03:09
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    Beginning capital balance will be $189500

    Explanation:

    We have given ending balance = $159000

    It is given that she withdraw $29000 from the partnership

    So withdraw amount = $29000

    Net loss = $20500

    And additional contribution = $19000

    We have to fond the capital balance at the beginning of the year

    So capital balance at the beginning of the year will be = Ending balance + withdraw amount + net loss - additional contribution = $159000 + $29000 + $20500 - $ 19000 = $189500

    So beginning capital balance will be $189500
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