A Local Partnership Has Two Partners, Jim and Pam

question 23

Multiple Choice

A local partnership has two partners, Jim and Pam. Jim has a capital balance of $150,000 and Pam has a capital balance of $125,000. These two partners share profits and losses 60 percent (Jim) and 40 percent (Pam) . Cece invests $75,000 in cash in the partnership for a 25 percent ownership. The bonus method will be used. What is Cece's capital balance after this new investment?

• A)$87,500.
• B)$157,500.
• C)$142,500.
• D)$120,000.
• E)$130,000.

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Definitions:

Therapeutic Effect

The beneficial health outcome or improvement observed from a treatment or intervention.

Hand Reflexology

A form of therapy that involves applying pressure to specific points on the hands believed to correspond with different parts of the body to promote healing and relieve stress.

Reflexology

An alternative medicine practice involving the application of pressure to specific points on the feet, hands, or ears, based on the belief that these points correspond to different organs and systems in the body.

Corresponding Body Part

A specific region or organ of the body that relates to, or is associated with, a particular function or activity.