Max, Jones and Waters Shared Profits and Losses 20%, 40

question 19

Multiple Choice

Max, Jones and Waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is $10,000, $30,000 and $50,000 respectively. Max has decided to withdraw from the partnership. An appraisal of the business and its property estimates the fair value to be $200,000. Land with a book value of $30,000 has a fair value of $45,000. Max has agreed to receive $20,000 in exchange for her partnership interest after revaluation. At what amount should land be recorded on the partnership books?

• A) $20,000.
• B) $30,000.
• C) $45,000.
• D) $50,000.
• E) $200,000.

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Definitions:

Schedule-induced Behavior

Behavior that emerges as a byproduct of a specific schedule of reinforcement, not directly targeted by the reinforcement itself.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Variable Ratio

A reinforcement schedule where the number of responses required to receive a reward varies, leading to high and consistent rates of response.

Salient

Something that stands out conspicuously or is most noticeable or important.