At December 31, 2014, Mick and Keith Are Partners with Capital

question 12

Multiple Choice

At December 31, 2014, Mick and Keith are partners with capital balances of $250,000 and $150,000, and they share profits and losses in the ratio of 2:1, respectively.On this date, Jumpin Jack invests $125,000 cash for a one-fifth interest in the capital and profit of the new partnership.The partners agree that the implied partnership goodwill is to be recorded simultaneously with the admission of Jumpin Jack.The total implied goodwill of the firm is

• A)$25,000.
• B)$20,000.
• C)$45,000.
• D)$100,000.

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Definitions:

Ethnic Enclave

A geographic area with a high concentration of people from the same ethnic background, often preserving distinct cultural and social characteristics.

Segregated

The enforced separation of different racial or social groups within the same country, community, or establishment.

South Asian Population

Individuals originating from the southern region of Asia, including countries like India, Pakistan, Bangladesh, and Sri Lanka.

Multiculturalism

An approach or policy that values diversity, recognizing and respecting the presence of multiple cultures and ethnicities within a society.