Partner a First Contributed $20,000 of Capital into an Existing

question 18

Multiple Choice

Partner A first contributed $20,000 of capital into an existing partnership on February 1, 2008. On June 1, 2008, the partner contributed another $20,000. On September 1, 2008, the partner withdrew $15,000 from the partnership. Withdrawals in excess of $5,000 are charged to the partner's capital account. The partnership's fiscal year end is December 31. The annual weighted-average capital balance is ____.

• A) $25,000
• B) $26,667
• C) $28,334
• D) $30,000

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Definitions:

Neem Oil Treatment

The application of neem oil, derived from the neem tree, as a natural pesticide to control pests and diseases in agriculture and horticulture.

Difference-In-Differences

Difference-in-differences is a method for identifying causality by looking at the way in which the average change over time in the outcome variable is compared to the average change in a control group.

Causality

The relationship between cause and effect, often established through correlation and experimentation.

Outcome Variable

The variable in a study or experiment that is measured to assess the effect of the treatment or intervention.