REFERENCE: Ref.14_04 Peter,Roberts,and Dana Have the Following Capital Balances;$80,000,$100,000 and $60,000 Respectively.The

question 72

Multiple Choice

REFERENCE: Ref.14_04
Peter,Roberts,and Dana have the following capital balances;$80,000,$100,000 and $60,000 respectively.The partners share profits and losses 20%,40%,and 40% respectively.
-Roberts retires and is paid $160,000 based on the terms of the original partnership agreement.If the goodwill method is used,what is the capital balance of Dana?

• A)$20,000.
• B)$60,000.
• C)$110,000.
• D)$120,000.
• E)$230,000.

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Definitions:

Yearly Observations

Refers to data points or measurements that are collected once every year.

Trend

A general direction in which something is developing or changing, observed in data over time.

Annual Time-series

A sequence of data points representing the value of a variable over a series of years.

Sequential Order

The arrangement of objects, events, or values in a specific sequence where the order is significant.