REFERENCE: 10-08
White,Sands,and Luke Has the Following Capital Account Balances $\begin{array}{ccc} & \text { White } &&& \text { Sands } & \text { Luke } \\\end{array}$

question 44

Short Answer

REFERENCE: 10-08
White,Sands,and Luke has the following capital account balances and profit and loss ratios:
$60,000 (30%);$100,000 (20%);and $200,000 (50%).
The partnership has received a predistribution plan.
-How would $90,000 be distributed?
$\begin{array}{ccc} & \text { White } &&& \text { Sands } & \text { Luke } \\\end{array}$
A) $\begin{array}{ccc} & \$ 15,000 & \$ 25,000 & \$ 50,000 \\\end{array}$
B) $\begin{array}{ccc} & \$ 0&&&&\$ 18,947 & \$ 71,053 \\\end{array}$
C) $\begin{array}{ccc} & \$0&&&& \$ 40,000 & \$ 50,000 \\\end{array}$
D) $\begin{array}{ccc} & \$0&&& & \$ 10,588 & \$ 79,412 \\\end{array}$
E) $\begin{array}{ccc} & \$ 27,000 && \$ 18,000 & \$ 45,000 \\\end{array}$

• A) \(\begin{array}{ccc} & \$ 15,000 & \$ 25,000 & \$ 50,000 \\\end{array}\)
• B) \(\begin{array}{ccc} & \$ 0&&&&\$ 18,947 & \$ 71,053 \\\end{array}\)
• C) \(\begin{array}{ccc} & \$0&&&& \$ 40,000 & \$ 50,000 \\\end{array}\)
• D) \(\begin{array}{ccc} & \$0&&& & \$ 10,588 & \$ 79,412 \\\end{array}\)
• E)\(\begin{array}{ccc} & \$ 27,000 && \$ 18,000 & \$ 45,000 \\
• \end{array}\)

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Definitions:

Data Table

A structured arrangement of data organized in rows and columns, which can be used for analysis or presentation.

Degrees of Freedom

The count of distinct values or numbers assignable to a statistical distribution.

Independence

A condition in which two or more variables are not related, meaning the behavior or value of one variable does not affect the other.

Estimated Parameters

Quantitative values derived from sample data that serve as best guesses for the parameters of the population from which the sample was drawn.