Final answer:
The distribution that would be made last in dividing profits to the partners when interest on capital and salary allowances are involved is d. Interest on capital balances.
Step-by-step explanation:
The distribution that would be made last in dividing profits to the partners when interest on capital and salary allowances are involved is d. Interest on capital balances.
When dividing profits among partners, the interest on capital balances is typically distributed last after other factors like equally, specified ratio, and salary allowances have been taken into account. This is because interest on capital represents the return on the partners' investments in the business and is treated as a form of profit.
For example, if partners A, B, and C have equal capital investments of $10,000 each, and the specified ratio is 2:3:5, the profits would first be divided equally, then according to the specified ratio, and finally, any remaining profits would be allocated as interest on capital balances.