Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $60,000 and $40,000, respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000 . What is Benson's capital balance after admitting Ramsey?
a. $20,000
b. $24,000
c. $48,800
d. $71,200
c
You might also like to view...
There are many different stakeholders found in an organization. Stakeholders drive business strategies, and depending on the stakeholder's perspective, the business strategy can change. Which of the following is a main concern for partners/suppliers?
A. Fair compensation B. Professional associations C. Reliable contracts D. Exceptional customer service
Describe the value of trust in an organization’s culture What disadvantages will a low- trust culture have for both its employees and overall function, and how are those problems mitigated when a high-trust culture is established?
What will be an ideal response?
With all risks coverage the insurance company must reimburse you for damages unless it can prove the loss was due to a specifically excluded peril
Indicate whether the statement is true or false
Madison is taking over as Chief Marketing Officer at MidWest Graphics. She has pledged to increase sales from their current level of $12,000,000 at a rate of 10% per year until the firm hits sales of $20,000,000 per year
How long will it take Madison to hit the target goal at this rate of increase? A) 7.67 years B) 1.53 years C) 5.36 years D) At that rate, Madison will never reach the target sales level in her lifetime.