Roberta Invests $16,000 for a 10% Interest in Bowie Partnership

question 61

Multiple Choice

Roberta invests $16,000 for a 10% interest in Bowie Partnership. In the first year of operations, Bowie reports net income from operations of $80,000 and distributes $6,000 cash to Roberta. How much gross income must Roberta recognize from her investment in Bowie?

• A)$2,000
• B)$6,000
• C)$8,000
• D)$80,000

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Definitions:

Risk Assessment Plan

A systematic process for identifying, analyzing, and managing project risks to minimize their impact on objectives.

Unbiased Estimator

A statistical estimator whose expected value is equal to the parameter it estimates, implying that it accurately reflects the population parameter over many samples.

Population Parameter

A numerical value that represents a characteristic of an entire population, such as its mean, variance, or standard deviation.

Population Variance

The variance computed for the entire population, reflecting the spread of all values in that population.