Crosby and Malkin Sell to Staal a 1/3 Interest in the Crosby-Malkin

question 96

Multiple Choice

Crosby and Malkin sell to Staal a 1/3 interest in the Crosby-Malkin partnership. Staal will pay Crosby and Malkin each personally, $ 60,000 for admission into the partnership. Before this transaction, Crosby and Malkin show capital balances of $ 45,000 each. The journal entry to record the admission of Staal will

• A) show a debit to Cash of $ 120,000.
• B) not show a debit to Cash.
• C) show a debit to Malkin, Capital for $ 60,000.
• D) show a credit to Staal, Capital for $ 120,000.

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Definitions:

Standard Deviation

A framework for quantifying how much a collection of data points varies or spreads.

Relative Standing

An indication of the position of a value within a dataset, often represented through percentiles, z-scores, or standard scores.

Upper Quartile

The value below which 75% of the data points in a dataset fall, also known as the third quartile.

Percentile

A measure that indicates the value below which a given percentage of observations in a group of observations falls.