P, L, and O Are Partners with Capital Balances of $50,000

question 42

Multiple Choice

P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest.C contributes $38,000 to the partnership and the bonus method is used. What amount will be credited for C's beginning capital balance?

• A) $20,000
• B) $25,000
• C) $27,600
• D) $32,600
• E) $38,000

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Definitions:

Depressive Symptoms

Manifestations of depression that can include a persistent sad or empty mood, feelings of hopelessness, and a lack of energy or interest in life.

Anxiety Symptoms

Manifestations of anxiety, including persistent nervousness, worry, and physical symptoms like increased heart rate, sweating, trembling, dizziness, or trouble concentrating.

Persistent Complex Bereavement Disorder

A disorder characterized by an extended period of grief and mourning that disrupts daily functioning.

Acute Stress Disorder

Disorder similar to posttraumatic stress disorder but occurs within 1 month of exposure to the stressor and does not last more than 4 weeks; often involves dissociative symptoms.