Floyd and Merriam Start a Partnership Business on June 12

question 31

Multiple Choice

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: They agreed to admit Ramelow into the business for a one-third interest in the new partnership. Ramelow contributes $24,000 cash in exchange for the partnership interest. What is the correct capital account balance of Ramelow after he enters the business?

• A) $24,000
• B) $32,000
• C) $28,000
• D) $55,000

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Definitions:

Real-World Demands

Refers to the practical requirements or pressures imposed by everyday life outside of a controlled environment.

Experiential Intelligence

A component of Robert Sternberg's triarchic theory of intelligence, focusing on the ability to apply past experiences and learning in practical, everyday situations.

Componential Intelligence

one aspect of Sternberg's Triarchic Theory of Intelligence, focusing on the analytical skills such as problem-solving, logical reasoning, and the ability to analyze.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence can be divided into three components: analytical, creative, and practical.