It is agreed in the partnership agreement of R and B that profit and loss sharing arrangements will be based on the ratio of the partner's capital balances.R and B have capital balances of $100 000 and $50 000 respectively at the end of the accounting period.If profit is $42 000 the profit allocations of each of the partners is:
A) R $21 000; B $21 000
B) R $24 000; B $18 000
C) R $28 000; B $14 000
D) R $14 000; B $28 000
Correct Answer:
Verified
Q3: With the variable capital balances method method
Q4: Internally generated goodwill is not recorded by
Q5: When assets are contributed to a partnership
Q6: Which of these is not a feature
Q7: If the variable capital balances method method
Q9: Douglas and Johnson each invested $50 000
Q10: Mutual agency means:
A)Unlimited liability for partnership debts
B)Sharing
Q11: Fair value is defined in the accounting
Q12: Which event would not result in the
Q13: Which of these is not a provision
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