Frank and Harry Are Partners

question 97

Multiple Choice

Frank and Harry are partners.Frank has a capital balance of $51,000 and Harry has a capital balance of $40,000.Bill contributes a building with a fair market value of $27,000 to the partnership for an ownership interest of 20%.Calculate Bill's capital in the new partnership.

• A) $13,000
• B) $27,000
• C) $24,000
• D) $23,600

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Definitions:

Supply Chain Management

Strategically links all operations dealing with resource supplies.

Effective Flow

The efficient and smooth process of operations and tasks in an organizational or project setting.

Continuous Flow

A production process where items move from one step to the next with minimal waiting, aiming to maximize efficiency and reduce waste.

Productivity Obstacle

Any factor that impedes the efficiency and effectiveness with which work can be performed and output can be generated.