In Their Business Partnership,George Has an Ownership Interest of 55

question 155

Multiple Choice

In their business partnership,George has an ownership interest of 55% and Ben has an ownership interest of 45%.In the current year,they purchase equipment for $9900.In order to finance the equipment purchase,George makes a cash contribution of $7400 and Ben makes a cash contribution of $2500 to the partnership.Based on the information provided,which of the following is TRUE regarding the partnership balance sheet?

• A) Both George, Capital and Ben, Capital will increase by $9900.
• B) George, Capital will increase by $7400 and Ben, Capital will increase by $2500.
• C) George, Capital will increase by $9900 and Ben, Capital will remain unchanged.
• D) George, Capital will increase by $5445 and Ben, Capital will increase by $4455.

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