Use the Following Information to Answer the Question(s) Below

question 13

Multiple Choice

Use the following information to answer the question(s) below.

A summary balance sheet for the Lemon, Mango, and Nobb partnership appears below. Lemon, Mango, and Nobb share profits and losses in a ratio of 2:3:5, respectively.
The partners agree to admit Oran for a one-fifth interest. The fair market value of partnership land is appraised at $200,000 and the fair market value of inventory is $175,000. The assets are to be revalued prior to the admission of Oran and there is $30,000 of goodwill that attaches to the old partnership.

-How much cash must Oran invest to acquire a one-fifth interest?

• A)$235,000
• B)$141,000
• C)$293,750
• D)$301,250

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Definitions:

Oxytocin

A hormone involved in social bonding, sexual reproduction, childbirth, and the period after childbirth.

Adrenocorticotrophic Hormone

A hormone produced by the pituitary gland that stimulates the adrenal glands to release cortisol and other hormones, especially in response to stress.

Gamma-aminobutyric Acid (GABA)

An inhibitory neurotransmitter in the brain that helps to regulate nerve excitability.

Inhibitory Neurotransmitter

A type of chemical messenger in the brain that reduces the likelihood of a neuron firing, thereby dampening neural activity.