Farrell and Jimmy Enter into a Partnership Agreement on May

question 33

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1,2018.Farrell contributes $30,000 and Jimmy contributes $140,000 as their capital contributions.They decide to share profits and losses in the ratio of their respective capital account balances.The net income for the year ended December 31,2018 is $40,000.Which of the following amounts should be credited to Jimmy's capital account? (Do not round any intermediate calculations.Round your final answers to the nearest dollar.)

• A) $70,000
• B) $40,000
• C) $32,941
• D) $7059

---

Definitions:

Corporate Secretary

A corporate secretary is an officer of a company responsible for ensuring compliance with statutory and regulatory requirements and implementing decisions made by the board of directors.

Revised Act

Legislation that has been amended or updated from its original version.

Material Violation

A substantial breach of a contract or agreement that significantly undermines the contract's purpose or damages the interests of one of the parties involved.

Material Breach

a significant violation of a contractual agreement that permits the other party to the contract to demand remediation or terminate the agreement.