Cor-Eng Partnership Was Formed on January 2,20X1

question 76

Multiple Choice

Cor-Eng Partnership was formed on January 2,20X1.Under the partnership agreement,each partner has an equal initial capital balance accounted for under the goodwill method.Partnership net income or loss is allocated 60% to Cor and 40% to Eng.To form the partnership,Cor originally contributed assets costing $30,000 with a fair value of $60,000 on January 2,20X1,while Eng contributed $20,000 in cash.Drawings by the partners during 20X1 totaled
$3,000 by Cor and $9,000 by Eng.Cor-Eng's 20X1 net income was $25,000.Eng's initial capital balance in Cor-Eng is

• A) $25,000
• B) $20,000
• C) $60,000
• D) $40,000

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Definitions:

Covalent Bonds

Chemical connections where two atoms share electrons mutually, contributing to the formation and structure of molecules.

Polarity

Separation of charge into distinct positive and negative regions.

Electronegativity

Measure of the ability of an atom to pull electrons away from other atoms.

Hydrophobicity

The physical property of a molecule that is seemingly repelled from a mass of water.