Gary,Peter,and Chris Own a Firm as Partners

question 149

Multiple Choice

Gary,Peter,and Chris own a firm as partners.Gary has a capital balance of $22,000; Peter a capital balance of $42,000; and Chris has a capital balance of $32,000.As per the partnership agreement,Gary gets a profit share of 2/9; Peter has 4/9; and Chris has 3/9.Which of the following is TRUE,if Gary withdraws from the partnership by receiving $22,000?

• A) Peter, Capital and Chris, Capital will be credited for $11,000 each.
• B) Gary, Capital will be debited for $22,000.
• C) Cash is debited for $22,000.
• D) Peter, Capital will be credited for $22,000.

Calculate adjustments for inventory transactions between parent and subsidiary and their impact on consolidated financial statements.

Understand the amortization of intangible assets with definite useful lives and impairment testing.

Calculate goodwill from a business combination and assess its impairment.

Apply the equity method for intercompany investments and understand how it affects the investment account and income statement.

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Definitions:

Bribery

The act of offering, giving, receiving, or soliciting something of value to influence the action of an official or other person in a position of authority.

Union Funds

Monetary resources collected and managed by a union through dues and other means to support its activities, operations, and member services.

Violence

Behavior involving physical force intended to hurt, damage, or kill someone or something.

Fair Labor Standards Act

U.S. legislation that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards in the private sector and federal, state, and local governments.