Hunt Sports Enterprises LP is organized as a limited partnership consisting of two individual… 1 answer below »

Hunt Sports Enterprises LP is organized as a limited partnership consisting of two individual partners: Soccer LP and Football LP. Both partners separately operate a minor league soccer team and a semipro football team. Compute partner return on equity for each limited partnership (and the total) for the year ended June 30, 2011, using the following selected data on partner capital balances from Hunt Sports Enterprises LP.

 

Soccer LP

Football LP

Total

Balance at 6/30/2010         

$378,000

$1,516,000

$1,894,000

Annual net income          

44,268

891,796

936,064

Cash distribution           

—

(100,000)

(100,000)

Balance at 6/30/2011         

$422,268

$2,307,796

$2,730,064