Fiona and Jason Have Capital Balances of $40 000 and $80

question 61

Multiple Choice

Fiona and Jason have capital balances of $40 000 and $80 000 respectively and use the variable capital balances method. If their profit/loss sharing ratios are Fiona 25% and Jason 75%, the balance of Fiona's capital account after a net loss of $50 000 is:

• A) $23 333
• B) $27 500
• C) $10 000
• D) $52 500

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Definitions:

Deliver to Order

A stipulation in shipping where goods are delivered to a specific party as per the instructions of the shipping document or bill of lading.

Innocent Purchaser

A legal term for someone who buys property without knowledge of any existing claims, disputes, or flaws affecting the property's title.

Stolen Vehicle

A vehicle taken without the owner's consent, often referred to as theft.

Good Faith

An honest intention to act without taking an unfair advantage over another person, underlying many contractual negotiations and agreements.