Solved

Gable and Devito Share Partnership Profits and Losses in the Ratio

Question 130

Short Answer

Gable and Devito share partnership profits and losses in the ratio of 6:4. Gable's Capital account balance is $160000 and Devito's Capital account balance is $100000. Nance is admitted to the partnership by investing $180000 and is to receive a one-fourth ownership interest. Gable Devito and Nance's capital balances after Nance's investment will be  Gable  Devito  Nance \begin{array} { c c c } &&&\text { Gable }& \text { Devito } && \text { Nance } \\\end{array}
A) $160,000$100,000$180,000\begin{array} { c c c } & \$ 160,000 & \$ 100,000 & \$ 180,000 \\\end{array}
B) $202,000$128,000$110,000\begin{array} { c c c } & \$ 202,000 & \$ 128,000 & \$ 110,000 \\\end{array}
C) $198,000$132,000$110,000\begin{array} { c c c } & \$ 198,000 & \$ 132,000 & \$ 110,000 \\\end{array}
D) $195,000$135,000$110,000\begin{array} { c c c } & \$ 195,000 & \$ 135,000 & \$ 110,000\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents