Peter, Roberts, and Dana Have the Following Capital Balances; $80,000

question 75

Multiple Choice

Peter, Roberts, and Dana have the following capital balances; $80,000, $100,000 and $60,000, respectively.The partners share profits and losses 20%, 40%, and 40% respectively.What is the total partnership capital after Roberts retires receiving $160,000 and using the goodwill method?

• A) $290,000.
• B) $176,000.
• C) $ 80,000.
• D) $120,000.
• E) $230,000.

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Definitions:

Arbitrariness

Actions or decisions made without apparent reason or established standards, often seen as random.

Administration of Law

The process of applying and enforcing legal rules and policies by governmental bodies or officials.

Formal Norm

Explicitly stated rules that govern the behaviors and actions within a society.

Low-Consensus Deviance

Activities or behaviors that are contested within society, with significant disagreement over whether they should be considered deviant.