Farrell and Jimmy Enter into a Partnership Agreement on May

question 66

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1, 2015. Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances. The net income for the year ended December 31, 2015 is $60,000. Which of the following amounts should be credited to Jimmy's capital account?

• A)$40,000
• B)$60,000
• C)$45,000
• D)$15,000

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Definitions:

Amniocentesis

A procedure for drawing and examining fetal cells sloughed off into amniotic fluid to determine the presence of various disorders.

Blastocyst

A stage within the germinal period of prenatal development in which the zygote has the form of a sphere of cells surrounding a cavity of fluid.

Nourishment

The substances necessary for growth, health, and good condition, often gained through the consumption of food and drink.

Fetal Movements

Refers to the physical movements made by a fetus within the uterus, which can begin to be felt by the mother around 18 to 25 weeks into pregnancy.