Partner capital accounts upon formation of partnership-Bonus Method Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports net assets of $35,000. Partner B is contributing cash of $45,000. The partners agree that the initial capital of the partnership should be shared equally. what will be the initial balance of the Capital Accounts of the partners assuming that the partners wish to employ the Bonus Method? Select one: a. Partner A Partner B $35,000 $45,000 b. Partner A Partner B $80,000 $80,000 c. Partner A Partner B $40,000 $40,000 d. Partner A Partner B $45,000 $45,000
Partner capital accounts upon formation of partnership-Bonus Method Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports net assets of $35,000. Partner B is contributing cash of $45,000. The partners agree that the initial capital of the partnership should be shared equally. what will be the initial balance of the Capital Accounts of the partners assuming that the partners wish to employ the Bonus Method? Select one: a. Partner A Partner B $35,000 $45,000 b. Partner A Partner B $80,000 $80,000 c. Partner A Partner B $40,000 $40,000 d. Partner A Partner B $45,000 $45,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Partner capital accounts upon formation of
Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports net assets of $35,000. Partner B is contributing cash of $45,000. The partners agree that the initial capital of the partnership should be shared equally. what will be the initial balance of the Capital Accounts of the partners assuming that the partners wish to employ the Bonus Method?
Select one:
a.
| Partner A | Partner B | |
|---|---|---|
| $35,000 | $45,000 |
b.
| Partner A | Partner B | |
|---|---|---|
| $80,000 | $80,000 |
c.
| Partner A | Partner B | |
|---|---|---|
| $40,000 | $40,000 |
d.
| Partner A | Partner B | |
|---|---|---|
| $45,000 | $45,000 |
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