In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.Refer to the information provided above. Erin invests $52,000 for a one-fifth interest. What amount of goodwill will be recorded?
A. $80,000
B. $28,000
C. $7,000
D. $50,000
Answer: B
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During a review of the financial statements of a nonpublic entity, the CPA finds that the financial statements contain a material departure from generally accepted accounting principles. If management refuses to correct the problem, the CPA should:
A. disclose the departure in a separate paragraph of the report. B. attach a footnote explaining the effects of the departure. C. issue a compilation report. D. issue an adverse opinion.
What should a writer focus on when writing a persuasive message?
A) Audience focused benefits B) The secondary audience C) Emphasis on benefits for the writer D) The primary audience's needs E) Proving benefits
The post-closing trial balance will generally have fewer accounts than the trial balance
Indicate whether the statement is true or false
Daniel contracted to buy a condo provided he could secure financing at or below 5 percent (5%) per year. This is:
a. a concurrent condition. b. a condition precedent. c. a condition subsequent. d. an accord condition.