The Following Balance Sheet Information Is for the Partnership of Abel

question 11

Multiple Choice

The following balance sheet information is for the partnership of Abel, Boule, and Cayman: Figures shown parenthetically reflect agreed profit and loss sharing percentages. If assets on the initial balance sheet are fairly valued, Abele and Boule consent and Dann pays Cayman $225,000 for his interest; the revised capital balances of the partners would be

• A) Abele, $315,000; Boule, $495,000; Dann, $450,000.
• B) Abele, $315,000; Boule, $495,000; Dann, $420,000.
• C) Abele, $300,000; Boule, $570,000; Dann, $450,000.
• D) Abele, $300,000; Boule, $480,000; Dann, $420,000.

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Definitions:

Bonus

An additional compensation awarded to employees as a reward for their performance beyond their usual salary.

Stock Outs

Occurs when an inventory item is not available in stock, leading to potential lost sales.

Office Supplies

Various products and equipment regularly used in offices, such as paper, pens, computers, and desks.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.