Tim and Michelle Have Decided to Form a Partnership with a 60/40

question 104

Multiple Choice

Tim and Michelle have decided to form a partnership with a 60/40 partnership interest ratio.Tim contributes $7500 cash and merchandise inventory with a market value of $1500.While journalizing this transaction ________.

• A) Tim, Capital will be debited for $9000
• B) Tim, Capital will be credited for $9000
• C) Tim, Capital will be credited for $6000 and Michelle, Capital will be credited for $4500
• D) Tim, Capital will be debited for $6000 and Michelle, Capital will be debited for $4500

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Definitions:

International Business

The exchange of goods, services, technology, and capital across national borders, involving transactions between parties from different countries.

Defense

A legal strategy or argument used to justify the actions or refute the claims made in a lawsuit or prosecution.

Tradition

The transmission of customs, beliefs, or symbols from one generation to another, often maintaining continuity in a culture or society.

Custom

Established practices or behaviors that are accepted and expected within a specific culture or community.