Accounting Midterm Exam ACG-2011: Question 1

Nee High and Low Jack are partners in an accounting firm and share net income and loss equally. High's beginning partnership capital balance for the current year is $285,000, and Jack's beginning partnership capital balance for the current year is $370,000. The partnership had net income of $250,000 for the year. High withdrew $90,000 during the year and Jack withdrew $100,000. What is Jack's return on equity?

	43.9%
	32.7%
	41.3%
	36.5%
	33.8%

$370,000 + $125,000 - $100,000 = $395,000 ending capital $125,000/[($370,000 + $395,000)/2] = 32.7%