Ruby and Anita Are Partners

question 19

Multiple Choice

Ruby and Anita are partners. Ruby has a capital balance of $250,000 and Anita has a capital balance of $200,000. Denis invests a building with a current market value of $150,000 to acquire an interest in the new partnership. Which of the following is true of the journal entry to record this transaction? (Assume no bonus to any partner.)

• A)Building will be debited for $150,000, Ruby, Capital and Anita, Capital will be credited for $75,000 each.
• B)Building will be debited for $150,000 and Denis, Capital will be credited for $150,000.
• C)Ruby, Capital and Anita, Capital will be debited for $75,000 each and Denis, Capital will be credited for $150,000.
• D)Ruby, Capital and Anita, Capital will be credited for $75,000 each and Denis, Capital will be debited for $150,000.

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Definitions:

Social Identity Theory

A psychological framework that analyzes how individuals categorize themselves and others into groups, influencing their behaviors and interactions.

Stereotypical Qualities

Stereotypical qualities are oversimplified generalizations about a group that ignore individual diversity and are often based on assumptions rather than factual evidence.

Personal Identity

An individual's self-concept derived from personal attributes, values, goals, and societal roles.

Optimal Distinctiveness Theory

A social psychology theory suggesting individuals seek to balance their need for uniqueness with their desire for belonging.