REFERENCE: Ref.14_05 Donald,Anne,and Todd Have the Following Capital Balances;$40,000,$50,000 and $30,000 Respectively.The

question 60

Multiple Choice

REFERENCE: Ref.14_05
Donald,Anne,and Todd have the following capital balances;$40,000,$50,000 and $30,000 respectively.The partners share profits and losses 20%,40%,and 40% respectively.
-What is the total partnership capital after Anne retires receiving $80,000 and using the bonus method?

• A)$20,000.
• B)$40,000.
• C)$60,000.
• D)$80,000.
• E)$100,000.

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Definitions:

Eliminated

Removed or taken away, typically referring to the action of completely doing away with something.

Economic Losses

Financial losses incurred by businesses or individuals, often resulting from poor decisions or market conditions.

Supply Curve

A graphic representation showing the relationship between the price of a good or service and the quantity supplied for a given period.

Exit the Industry

The process by which a business ceases operations in a particular market or industry, usually due to economic pressures or lack of profitability.