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Gary,Peter and Chris Own a Firm as Partners

question 7

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Gary,Peter and Chris own a firm as partners.Gary has a capital balance of $21,000;Peter a capital balance of $38,000;and Chris has a capital balance of $33,000.As per the partnership agreement,Gary gets a profit share of 2/9;Peter has 4/9;and Chris has 3/9.Which of the following is true,if Gary withdraws from the partnership by receiving $21,000?


Definitions:

Market Price

The actual selling price of goods or services in the market, which may fluctuate based on demand and supply.

Foreign Currency Translation

The process of converting the financial statements of a company from its operating currency into another currency for reporting purposes.

Other Comprehensive Income

Specified items that are reported separately from net income, including foreign currency items, pension liability adjustments, and unrealized gains and losses on investments.

Adjustment

A process of making entries to account records to correct or update the financial information.

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