Donovan Invests $60,000 for a 30 Percent Interest in a Partnership

question 16

Multiple Choice

Donovan invests $60,000 for a 30 percent interest in a partnership in which the other partners have capital totaling $100,000 before admitting Donovan. After distribution of the bonus, what is Donovan's capital balance?

• A) $30,000
• B) $48,000
• C) $60,000
• D) $72,000

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Definitions:

Uncontrollable

A term referring to factors or costs that cannot be directly controlled or influenced by decisions in the short term.

Uncontrollable Costs

Costs that cannot be influenced or changed by the actions of a specific individual or management level within the organization.

Controllable Cost

Expenses that a manager or business has the power to influence or change directly.

Bottling Wine

Bottling wine involves the process of filling wine bottles with wine after fermentation and aging, preparing them for distribution and sale.