A Local Partnership Has Assets of Cash of $5,000 and a Building

question 1

Multiple Choice

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) $5,000.
• B) $9,000.
• C) $18,000.
• D) $28,000.
• E) $55,000.

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Definitions:

Community Need

The demands or requirements essential for the wellbeing and improvement of a specific community.

Cause Marketing

Collaborative efforts between a for-profit and a nonprofit organization for mutual benefit, where the partnership aims to increase support for a social cause while also benefiting the for-profit partner.

Commercial Co-Venturers

A partnership between a for-profit business and a nonprofit organization for mutual benefit, often involving marketing efforts that also support a charitable cause.

Corporate Sponsorships

Financial or in-kind support provided by a business to an event, activity, person, or organization in exchange for some form of commercial return.