Floyd and Merriam Start a Partnership Business on June 12,2019 $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 55,000 \\\hline \text { Merriam } & 17,000 \\\hline\end{array}$$

question 26

Multiple Choice

Floyd and Merriam start a partnership business on June 12,2019.Their capital account balances as of December 31,2020 stood as follows: $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 55,000 \\\hline \text { Merriam } & 17,000 \\\hline\end{array}$$ They agreed to admit Ramelow into the business for a one-third interest in the new partnership.Ramelow contributes $24,000 cash in exchange for the partnership interest.Floyd and Merriam share profits and losses equally before the admission of Ramelow.What is the correct capital account balance of Ramelow after he enters the business? (Do not round intermediate calculations.Round the final answer to the nearest dollar.)

• A) $24,000
• B) $32,000
• C) $28,000
• D) $55,000

Identify the benefits and drawbacks of procrastination.

Understand the importance of setting priorities and goal setting in personal and professional development.

Recognize the role and limitations of employee assistance programs (EAPs) in addressing personal issues affecting work performance.

Understanding the components and structure of the balance sheet, including stockholders' equity, assets, and liabilities.

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Definitions:

Qualitative Characteristics

Attributes that make the information provided in financial statements useful to users, such as relevance and faithfulness.

Faithful Representation

A qualitative characteristic of financial information that ensures the reported data accurately reflects the economic phenomena it purports to represent.

Relevance

The quality of information that is capable of making a difference in the decisions made by the users of financial information.

Verification Costs

Expenses associated with ensuring that a product, service, or system meets specific standards or requirements.