The Partnership of Gilligan,Skipper,and Ginger Had Total Capital of $570,000

question 11

Multiple Choice

The partnership of Gilligan,Skipper,and Ginger had total capital of $570,000 on December 31,2017 as follows: Profit and loss sharing percentages are shown in parentheses.Assume that Mary Ann became a partner by investing $150,000 in the Gilligan,Skipper,and Ginger partnership for a 25 percent interest in capital and profits and that partnership net assets are not revalued.Mary Ann's capital credit using the bonus method should be

• A)$180,000.
• B)$142,500.
• C)$150,000.
• D)$190,000.

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Definitions:

Savers

Individuals who allocate part of their income to a savings account or other forms of investment for future use, rather than spending it immediately.

Borrowers

Individuals or entities that take out loans from financial institutions or individuals, typically agreeing to pay back the original amount plus interest.

Structural Unemployment

When people are out of work for a couple of years or longer.

Textile Mill

A factory specialized in manufacturing various kinds of fabrics from natural and synthetic fibers through processes like weaving, knitting, and dyeing.