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:

Imprisonment

Imprisonment refers to the act of confining someone in a prison as a punishment for a crime they have been convicted of.

Driving Under the Influence

The crime or offense of operating a vehicle while impaired by alcohol or other drugs to a level that renders the driver incapable of operating a vehicle safely.

Felony

A crime—such as arson, murder, rape, or robbery—that carries the most severe sanctions, usually ranging from one year in a state or federal prison to the forfeiture of one’s life.

Imprisonment

The state of being confined in jail or prison as a legal punishment for crimes committed.