The Partners of Apple,Bere,and Carroll LLP Share Net Income and Losses

question 63

Multiple Choice

The partners of Apple,Bere,and Carroll LLP share net income and losses in a 5:3:2 ratio,respectively.The capital account balances on January 1,2008,were as follows:
The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values.Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment.The amount of cash that Dorr should invest in the partnership is:

• A)$25,000.
• B)$30,000.
• C)$37,500.
• D)$75,000.
• E)$90,000.

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Definitions:

Temporal Lobe

A region of the brain involved in processing auditory information and is essential for memory formation and language comprehension.

Words

Symbolic units of language used to convey meaning and communicate ideas.

Limbic Structure

A complex system of nerves and networks in the brain, involved in instinct and mood control, as well as the processing of emotions and memories.

Sensory Information

Data received by sensory receptors and transferred to the brain, playing a crucial role in how organisms interpret the world around them.