Mace and Bowen Are Partners and Share Equally in Income

question 29

Multiple Choice

Mace and Bowen are partners and share equally in income or loss.Mace's current capital balance is $135,000 and Bowen's is $120,000.Mace and Bowen agree to accept Kent with a 30% interest in the partnership.Kent invests $115,000 in the partnership.The balances in Mace's and Bowen's capital accounts after admission of the new partner equal:

• A)Mace $135,000;Bowen $120,000.
• B)Mace $137,000;Bowen $122,000.
• C)Mace $133,000;Bowen $118,000.
• D)Mace $139,000;Bowen $120,000.
• E)Mace $135,000;Bowen $124,000.

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Definitions:

Raw Ingredients

Basic materials or substances used in the initial stages of production or manufacturing processes.

Activity-Based Costing

Activity-based costing is an accounting method that assigns costs to products based on the activities required to produce them, aiming to provide more accurate product costing.

Complexity-Related

Pertaining to factors or costs associated with the complexity of producing a product or service, including design, customization, and process intricacies.

Size-Related

Anything pertaining to or dependent on the size or scale of an object, situation, or entity.