Roberts Retires and Is Paid $160,000 Based on an Independent

question 81

Multiple Choice

Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Peter?

• A) $ 20,000.
• B) $ 60,000.
• C) $110,000.
• D) $120,000.
• E) $230,000.

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Definitions:

Goods

Physical items that are produced or natural, which can be bought, sold, or traded in the market.

Description

A detailed account or explanation of the characteristics or features of something.

Statutory Assignment

A transfer of rights or benefits from one party to another, as permitted or required by statute or law.

Enforceable

Enforceable describes a legal agreement or rule that can be upheld or made effective by a court of law.