Max, Jones and Waters Shared Profits and Losses 20%, 40

question 19

Multiple Choice

Max, Jones and Waters shared profits and losses 20%, 40%, and 40% respectively and their partnership capital balance is $10,000, $30,000 and $50,000 respectively. Max has decided to withdraw from the partnership. An appraisal of the business and its property estimates the fair value to be $200,000. Land with a book value of $30,000 has a fair value of $45,000. Max has agreed to receive $20,000 in exchange for her partnership interest after revaluation. At what amount should land be recorded on the partnership books?

• A) $20,000.
• B) $30,000.
• C) $45,000.
• D) $50,000.
• E) $200,000.

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Definitions:

Microaggression

Everyday verbal, nonverbal, and environmental slights, snubs, or insults, whether intentional or unintentional, that communicate hostile, derogatory, or negative attitudes toward stigmatized or culturally marginalized groups.

Gender Role Socialization

The process by which individuals learn the societal expectations and behaviors appropriate to their gender through various socializing agents.

Transgender Woman

An individual who was assigned male at birth but identifies and lives as a woman.

Rape Culture

A sociological concept for a setting in which rape is pervasive and normalized due to societal attitudes about gender and sexuality.