Smiles and Scowls,two Sole Traders Form a Partnership by Combining

question 3

Multiple Choice

Smiles and Scowls,two sole traders form a partnership by combining their net assets.
Smiles contributes: $\begin{array}{lcc} & \text { Cost value } & \text { Fair value } \\\text { Accounts Receivable } & \$ 10000 & \$ 8500 \\\text { Cash } & \$ 20000 &\\\text { Scowls contributes: }\\\text { Plant } & \$ 30000 & \$ 25000 \\\text { Accumulated Depreciation } & \$ 8000 & \\\text { Bank Overdraft } & \$ 11000 &\end{array}$
The amount credited to Smiles' Capital account is:

• A)$30 000
• B)$29 000
• C)$28 500
• D)$20 000

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Definitions:

Horizontal Conflict

Disputes or disagreements between individuals or groups at the same level of an organizational hierarchy.

Equally Unattractive

A situation where all options or choices available are perceived to be negative or undesirable to the same degree.

Functional Conflict

A conflict that supports the goals of a group, improves its performance, and is therefore considered positive.

Equally Attractive

Describes alternatives or options that are perceived to have similar levels of desirability or benefits, making the choice between them challenging.