Roberts Retires and Is Paid $160,000 Based on an Independent

question 45

Multiple Choice

Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Dana?

• A) $ 20,000.
• B) $ 60,000.
• C) $110,000.
• D) $120,000.
• E) $230,000.

---

Definitions:

Confirmation Letter

A written communication that verifies and confirms the details of a previous agreement or conversation.

Oral Agreement

An agreement between parties that is made through spoken words and is legally binding though not recorded in written form.

Recover Cost

entails obtaining reimbursement for funds that have been expended for a specific purpose, often through legal or contractual means.

Express Terms

Clearly stated conditions and stipulations in a contract, either orally or in writing, that outline the specific obligations of the parties involved.