Jabari becomes a 40% interest partner in an accounting partnership on January 1, 2022. During the fiscal period ended December 31, 2022, the partnership business earns income of $200,000 for accounting purposes. In arriving at this income, the bookkeeper deducted meals and entertainment costs of $20,000, and a charitable donation of $5,000. Jabari withdraws $50,000 from the partnership in 2022. As of January 1, 2023, the ACB of his partnership interest will have increased by: a. $24,000. b. $30,000 c. $34,000 d. $38,000
Jabari becomes a 40% interest partner in an accounting partnership on January 1, 2022. During the fiscal period ended December 31, 2022, the partnership business earns income of $200,000 for accounting purposes. In arriving at this income, the bookkeeper deducted meals and entertainment costs of $20,000, and a charitable donation of $5,000. Jabari withdraws $50,000 from the partnership in 2022. As of January 1, 2023, the ACB of his partnership interest will have increased by: a. $24,000. b. $30,000 c. $34,000 d. $38,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jabari becomes a 40% interest partner in an accounting partnership on January 1, 2022. During the fiscal period ended December 31, 2022, the partnership business earns income of $200,000 for accounting purposes. In arriving at this income, the bookkeeper deducted meals and entertainment costs of $20,000, and a charitable donation of $5,000. Jabari withdraws $50,000 from the partnership in 2022. As of January 1, 2023, the ACB of his partnership interest will have increased by:
a. $24,000.
b. $30,000
c. $34,000
d. $38,000
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