The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2018, were as follows: $ 25,e00 Apple, capital Bere, capital Carroll, capital Total partners' capital 75,000 5e, eee $150,000 The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Cholce $25,000. $30,000. $37,500. $75,000. $90,000.
The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2018, were as follows: $ 25,e00 Apple, capital Bere, capital Carroll, capital Total partners' capital 75,000 5e, eee $150,000 The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Cholce $25,000. $30,000. $37,500. $75,000. $90,000.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Transcribed Image Text:The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2018, were as follows:
$ 25,000
Apple, capital
Bere, capital
Carroll, capital
75,000
50,000
Total partners' capital
$150,000
The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income
and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is:
Multiple Cholce
$25,000.
$30,000.
$37,500.
$75,000.
$90.000.
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Partnership means where two or more person joins together to do business and share profits and losses of the business.
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