The Partners of Apple,Bere,and Carroll LLP Share Net Income and Losses

question 1

Multiple Choice

The partners of Apple,Bere,and Carroll LLP share net income and losses in a 5:3:2 ratio,respectively.The capital account balances on January 1,2011,were as follows: $\begin{array} { | l | r | } \hline \text { Apple, capital } & \$ 25,000 \\\hline \text { Bere, capital } & 75,000 \\\hline \text { Carroll, capital } & 50,000 \\\hline \text { Total partners' capital } & \$ 150,000 \\\hline\end{array}$ The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values.Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment.The amount of cash that Dorr should invest in the partnership is:

• A)$25,000.
• B)$30,000.
• C)$37,500.
• D)$75,000.
• E)$90,000.

---

Definitions:

Urinary Stoma

An artificially created opening in the abdominal wall for urine to exit the body, typically after removal of part or all of the urinary bladder.

Noncontinent Urinary Diversion

A surgical procedure to create a new path for urine to leave the body after bladder removal, where the flow of urine cannot be voluntarily controlled.

Nursing Intervention

Any action taken by nursing staff to improve or support the health outcomes of a patient.

Large Intestine

The final section of the digestive system, involved in water absorption and the formation of feces.