Badger and Fox Are Forming a Partnership

question 119

Multiple Choice

Badger and Fox are forming a partnership. Badger invests a building that has a market value of $350,000; the partnership assumes responsibility for a $125,000 note secured by a mortgage on the property. Fox invests $100,000 in cash and equipment that has a market value of $75,000. For the partnership, the amounts recorded for total assets and for total capital account are:

• A) Total assets $525,000; total capital $400,000.
• B) Total assets $400,000; total capital $400,000.
• C) Total assets $650,000; total capital $650,000.
• D) Total assets $400,000; total capital $525,000.
• E) Total assets $525,000; total capital $525,000.

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Definitions:

Core Processes

Fundamental business processes that are essential to the operation of a company and its ability to provide value to customers.

Performance Contributions

The impact or value an individual or team adds to an organization's goals through their work, expertise, and achievements.

Work Process

The sequence of tasks or activities that are carried out to produce a particular outcome, often within a professional or industrial setting.

Productivity

Productivity is the measure of efficiency with which goods and services are produced, often quantified as output per unit of input.