The Summarized Balances of the Accounts of MNO Partnership on December

question 42

Multiple Choice

The summarized balances of the accounts of MNO partnership on December 31, 2014, are as follows: $\begin{array}{lrlr}\text { Assets }&&\text { Liabilities and Capital }\\\text { Cash } & \$ 15,000 & \text { Liabilities } & \$ 15,000 \\\text { Noncash } & 90,000 & \text { M, Capital } & 45,000 \\& & \text { N, Capital } & 30,000 \\& & \text { O, Capital } & 15,000 \\\hline\text { Total Assets } & \$ 105,000 &\text { Total Equities }& \$ 105,000\end{array}$ The agreed upon profit/loss ratio is 50:40:10, respectively.Using the information given above, which one of the following amounts, if any, is the loss absorption potential of partner N as of December 31, 2014?

• A)$20,000
• B)$35,000
• C)$75,000
• D)$120,000

---

Definitions:

Exclusiveness

In the context of relationships, it refers to being romantically involved with one person only, not maintaining or seeking other sexual or romantic relationships.

Hermaphrodite Couples

A term, often considered outdated and inaccurate, historically used to describe couples where one or both partners have intersex traits.

Gay Couples

Romantic partnerships between two individuals of the same sex.