The Trial Balance of WM Partnership Is as Follows

question 36

Multiple Choice

The trial balance of WM Partnership is as follows:
Wilfred and Mike decide to incorporate their partnership.The partnership's books will be closed,and new books will be used for W & M Corporation.The following additional information is available:
1.The estimated fair values of the assets follow:
2.All assets and liabilities are transferred to the corporation.
3.The common stock is $10 par.Wilfred and Mike receive a total of 10,000 shares.
4.The partners share profits and losses in the ratio 7:3.
-Based on the preceding information,the journal entry on the partnership's books to record the Investment in W&M Corporation Stock will be debited for:

• A)$181,000
• B)$131,000
• C)$200,000
• D)$150,000

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Definitions:

Exchange

The act of giving something to someone and receiving something in return, typically referring to goods, services, or information.

Impression Management

The process by which individuals attempt to control the perceptions others have of them, often through altering their behavior or presentation in social contexts.

Behavioral Management

Strategies and practices employed to influence individuals' actions within an organization.

Conflict Management

The practice of identifying and dealing with conflicts in a constructive manner to minimize the negative impact on organizations or relationships.