The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, 2010, the beginning of the current fiscal year. On April 10, Hawk invested an additional $10,000. During the year, Hawk and Martin withdrew $86,000 and $68,000, respectively, and net income for the year was $258,000. The articles of partnership make no reference to the division of net income.

Based on this information, the statement of partners’ equity for 2010 would show what amount as total capital for the partnership on December 31, 2010?

To determine the total capital for the partnership on December 31, 2010, we need to consider the various transactions that affected the capital accounts throughout the year.

1. The initial balances of the capital accounts on January 1, 2010 are:
- Hawk: $160,000
- Martin: $140,000

2. On April 10, 2010, Hawk invested an additional $10,000. This increases Hawk's capital account:
- Hawk: $160,000 + $10,000 = $170,000
- Martin: $140,000

3. During the year, both partners made withdrawals:
- Hawk: $86,000
- Martin: $68,000

To calculate the final capital accounts, we need to subtract the withdrawals from the respective initial balances:

- Hawk: $170,000 - $86,000 = $84,000
- Martin: $140,000 - $68,000 = $72,000

4. Lastly, we need to consider the net income for the year, which was $258,000. Since the articles of partnership make no reference to the division of net income, we assume it is split equally between the partners:

- Hawk: $84,000 + ($258,000/2) = $213,000
- Martin: $72,000 + ($258,000/2) = $201,000

Therefore, the statement of partners’ equity for 2010 would show a total capital of $213,000 for the partnership on December 31, 2010.

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