The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5.3.2 ratio, respectively. The capital account balances on January 1, 2021, were as follows: Apple, capital Bere, capital Carroll, capital Total partners' capital The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Choice $25,000 $75.000 $ 25,000 75,000 50,000 $150,000 $37,500

The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5.3.2 ratio, respectively. The capital account balances on January 1, 2021, were as follows: Apple, capital Bere, capital Carroll, capital Total partners' capital The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: Multiple Choice $25,000 $75.000 $ 25,000 75,000 50,000 $150,000 $37,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2021,
were as follows:
Apple, capital
Bere, capital
Carroll, capital
Total partners' capital
The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with
a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the
partnership is:
Multiple Choice
$25,000.
$75.000
$ 25,000
75,000
50,000
$150,000
$37,500

a 20% capital Interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the
partnership is:
Multiple Choice
$25,000
$75,000
$37,500.
$90,000
Save & Exit
$30,000

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