A Summary Balance Sheet for the Partnership of Quail, Rainne

question 26

Essay

A summary balance sheet for the partnership of Quail, Rainne and Selma on December 31, 2011 is shown below.Partners Quail, Rainne and Selma allocate profit and loss in their respective ratios of 6:3:1.
The partners agree to admit Trask for a one-tenth interest.The fair market value for partnership land is $260,000, and the fair market value of the inventory is $370,000.
Required:
1.Record the entry to revalue the partnership assets prior to the admission of Trask.
2.Calculate how much Trask will have to invest to acquire a 10% interest.
3.Assume the partnership assets are not revalued.If Trask paid $300,000 to the partnership in exchange for a 10% interest, what would be the bonus that is allocated to each partner's capital account?

Examine the relationship between freedom, responsibility, and morality.

Distinguish between various types of determinism and their criticisms.

Understand the role of individual character and social entities in defining freedom.

Learn about different philosophical perspectives on freedom, including Kant, Sartre, and African Yoruba philosophy.

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Definitions:

Cost of Capital

The obligatory profit percentage a corporation needs to achieve on its investments to keep its market share and attract investors.

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of investments, representing the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

Net Cash Flows

The difference between a company's cash inflows and outflows during a specific period, representing its ability to generate value.

Depreciation

The accounting entry allocating the cost of a long-lived asset against income over the asset’s life. Depreciation is a noncash charge, so net income is generally less than true cash flow by at least the amount of depreciation.