Tom and Barb Are Partners Who Share Profits and Losses

question 102

Multiple Choice

Tom and Barb are partners who share profits and losses in the ratio of 6:4 for Tom and Barb, respectively. Their capital balances are $47,000 and $32,000, respectively. If Jane is admitted to the partnership for $28,000 for a one-fourth interest, her capital balance will be:

• A) $35,667.
• B) $15,000.
• C) $28,000.
• D) $26,750.

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Definitions:

Mountain

A natural elevation of the Earth's surface rising significantly above the surrounding landscape, often formed through tectonic forces or volcanism.

Uplifted

Refers to regions of the Earth’s crust that have been raised vertically, often due to tectonic processes.

Asthenosphere

The semi-fluid layer of the Earth's mantle beneath the lithosphere which allows for plate movement and is involved in convective processes within the Earth.

Lithosphere

The rigid outer layer of the Earth, comprising the crust and the upper part of the mantle.