Mace and Bowen Are Partners and Share Equally in Income

question 100

Multiple Choice

Mace and Bowen are partners and share equally in income or loss.Mace's current capital balance is $135,000 and Bowen's is $120,000.Mace and Bowen agree to accept Kent with a 30% interest in the partnership.Kent invests $115,000 in the partnership.The amount credited to Kent's capital account is:

• A)$111,000.
• B)$115,000.
• C)$92,500.
• D)$120,000.
• E)$119,000.

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Definitions:

Settlement Range

The range within which parties are willing to negotiate and reach an agreement in a dispute.

Bargaining Committee

A group of employees or union members designated to negotiate labor contracts with their employer.

Hourly Wage

Payment to employees based on the number of hours worked, set as a rate per hour.

NLRB

The National Labor Relations Board, a US government agency that enforces US labor law in relation to collective bargaining and unfair labor practices.