April and Cammy Are Partners Who Have Agreed to Admit

question 51

Multiple Choice

April and Cammy are partners who have agreed to admit Elena,who will invest $30,000 for a 20 percent interest.The previous capital balances were $30,000 and $60,000 for April and Cammy,respectively.April and Cammy had shared profits equally.What amount will be recorded in Elena's Capital account?

• A)$12,000 credit
• B)$24,000 credit
• C)$30,000 credit
• D)$18,000 credit

Recognize the role of LinkedIn in professional networking and job searching.

Identify different types of Web 2.0 applications and their purposes.

Comprehend the economic model of collaborative consumption.

Understand the ethical considerations of social marketing and data collection.

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Definitions:

Subsidiary's Income

The earnings generated by a company that is more than 50% owned by another company, referred to as the parent company.

Straight Line Amortization

A method of writing off the cost of an intangible asset evenly over its useful life.

Equity Method

An accounting approach used to assess the investment in another company, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of net assets and recorded earnings of the investee.

Impairment Test

An examination to determine if an asset's carrying amount exceeds its recoverable amount, and if so, to measure the amount of impairment loss.