Chen and Wright Are Forming a Partnership

question 25

Multiple Choice

Chen and Wright are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $30,000 note secured by a mortgage on that building. Wright will invest $50,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are:

• A) Building, $90,000 and Chen, Capital, $90,000.
• B) Building, $60,000 and Chen, Capital, $60,000.
• C) Building, $60,000 and Chen, Capital, $50,000.
• D) Building, $90,000 and Chen, Capital, $60,000.
• E) Building, $60,000 and Chen, Capital, $90,000.

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Definitions:

Dominant Power

Refers to the institution, group, or nation that holds the most authority and capability to exert influence over others within a given context.

Dominant Theoretical Paradigm

The prevailing set of theories, assumptions, and methodologies that form the mainstream understanding within a scientific or academic discipline.

Ethnomethodology

A sociological approach focusing on how people use everyday conversation and gestures to construct a common sense of reality.

Phenomenology

A philosophical movement that emphasizes the direct study of experience and consciousness to understand the essence of phenomena.