A local partnership has assets of cash of $5,000 and a building recorded at $80,000. All liabilities have been paid. The partners' capital accounts are as follows Harry $40,000, Landers $30,000 and Waters $15,000. The partners share profits and losses 4:4:2.If the building is sold for $50,000, what amount should Waters receive in the final settlement?
A. $18,000.
B. $5,000.
C. $55,000.
D. $9,000.
E. $28,000.
Answer: D
You might also like to view...
Which one of the following is an assumption made in the preparation of financial statements?
a. Financial statements are prepared for a specific entity that is distinct from the entity owners. b. Financial statements are prepared assuming that inflation has a distinct effect on the monetary unit c. Preparation of financial statements for a specific time period assumes that the balance sheet covers a period of time. d. Market values are always assumed to be irrelevant when preparing financial statements.
At which point in an ordinary sales transaction of a wholesaling business would a lack of specific authorization be of least concern to the auditor?
A. Selling of goods for cash. B. Granting of credit. C. Determination of discounts. D. Shipment of goods.
What is the purpose of the Implicit Attitude Test exercise?
a. to show how to deal with racially-motivated abuse b. to teach how to be a diversity initiative leader c. to show what it’s like to be prejudged d. to increase self-awareness about diversity
__________is compensation that depends on some measure of individual or group performance or results in order to be awarded.
A. Variable pay B. Merit pay C. Vesting D. Golden parachutes E. Perquisites