Keith and Jim Are Partners

question 20

Multiple Choice

Keith and Jim are partners.Keith has a capital balance of $51,000 and Jim has a capital balance of $39,000.Bill contributes a building with a fair market value of $27,000 to the partnership for an ownership interest of 20%.How much is the total bonus for the existing partners?

• A) $12,000
• B) $13,500
• C) $3600
• D) $27,000

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Definitions:

Group Think

An event observed in group settings, where the preference for a harmonious or conforming atmosphere instigates choices that are lacking in logic or functionality.

Strong Leader

An individual who possesses assertiveness, decisiveness, and the ability to motivate and guide others toward achieving specific goals.

Consensus

A general agreement among the members of a given group or community.

Early Studies

Refers to research or academic investigations that are conducted at the initial stages of understanding a phenomenon, often laying the groundwork for future, more detailed exploration.