Mace and Bowen Are Partners and Share Equally in Income

question 29

Multiple Choice

Mace and Bowen are partners and share equally in income or loss.Mace's current capital balance is $135,000 and Bowen's is $120,000.Mace and Bowen agree to accept Kent with a 30% interest in the partnership.Kent invests $115,000 in the partnership.The balances in Mace's and Bowen's capital accounts after admission of the new partner equal:

• A)Mace $135,000;Bowen $120,000.
• B)Mace $137,000;Bowen $122,000.
• C)Mace $133,000;Bowen $118,000.
• D)Mace $139,000;Bowen $120,000.
• E)Mace $135,000;Bowen $124,000.

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Definitions:

Entrepreneur

An individual who starts and runs a business, assuming the risks and rewards associated with the venture, often innovating and driving economic growth.

Highly Valued Uses

These are applications or purposes for which a resource, product, or service is considered particularly beneficial or desirable, attracting higher willingness to pay.

Specialization

The practice of focusing resources on the production of specific goods or services to increase efficiency and expertise.

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.