Tom, Jerry and Donald started off a partnership firm on July 31, 2018. They decided to share profits equally, but also inserted a clause in the partnership agreement whereby any loss suffered would be borne in the ratio 3:2:1. For the year ended December 31, 2018, the firm earned a net income of $45,000. However, for the year ended December 31, 2019, the firm incurred a loss of $60,000. Assuming that Donald had an initial capital contribution of $40,000 and made no further withdrawals. What is the balance of Donald's Capital account as of December 31, 2019? (Assume that none of the partners made any further contributions to their capital accounts.)

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?