Gable and Devito Share Partnership Profits and Losses in the Ratio

question 40

Short Answer

Gable and Devito share partnership profits and losses in the ratio of 6:4. Gable's Capital account balance is $160000 and Devito's Capital account balance is $100000. Nance is admitted to the partnership by investing $180000 and is to receive a one-fourth ownership interest. Gable Devito and Nance's capital balances after Nance's investment will be $\begin{array} { c c c } &&&\text { Gable }& \text { Devito } && \text { Nance } \\\end{array}$
A) $\begin{array} { c c c } & \$ 160,000 & \$ 100,000 & \$ 180,000 \\\end{array}$
B) $\begin{array} { c c c } & \$ 202,000 & \$ 128,000 & \$ 110,000 \\\end{array}$
C) $\begin{array} { c c c } & \$ 198,000 & \$ 132,000 & \$ 110,000 \\\end{array}$
D) $\begin{array} { c c c } & \$ 195,000 & \$ 135,000 & \$ 110,000\end{array}$

• A) \(\begin{array} { c c c } & \$ 160,000 & \$ 100,000 & \$ 180,000 \\\end{array}\)
• B) \(\begin{array} { c c c } & \$ 202,000 & \$ 128,000 & \$ 110,000 \\\end{array}\)
• C)\(\begin{array} { c c c } & \$ 198,000 & \$ 132,000 & \$ 110,000 \\\end{array}\)
• D)\(\begin{array} { c c c } & \$ 195,000 & \$ 135,000 & \$ 110,000
• \end{array}\)

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Definitions:

Stock Exchange Bid

An offer made by an investor, trader, or dealer to buy a security that specifies the price and the quantity the buyer is willing to purchase.

Corporate Takeover

An event where one company purchases or acquires control over another company, either through a mutual agreement or a hostile bid.

Shares

Units of ownership interest in a corporation or financial asset, providing for an equal distribution in any profits, if any are declared.

Taxable Transactions

Transactions subject to taxation by governing authorities, typically involving the sale or transfer of goods, services, or assets.