The partnership of Abel and Caine was formed on February 28, 2017. At that date the following assets were invested: Abel Caine Cash $ 120,000 $200,000 Merchandise -0- 320,000 Building -0- 840,000 Furniture and equipment 200,000 -0- The building is subject to a mortgage loan of $280,000, which is to be assumed by the partnership. The partnership agreement provides that Abel and Caine share profits or losses 30% and 70%, respectively. Caine's capital account at February 28, 2017, should be A) $1,080,000. B) $1,360,000. C) $1,176,000. D) $952,000.
The partnership of Abel and Caine was formed on February 28, 2017. At that date the following assets were invested: Abel Caine Cash $ 120,000 $200,000 Merchandise -0- 320,000 Building -0- 840,000 Furniture and equipment 200,000 -0- The building is subject to a mortgage loan of $280,000, which is to be assumed by the partnership. The partnership agreement provides that Abel and Caine share profits or losses 30% and 70%, respectively. Caine's capital account at February 28, 2017, should be A) $1,080,000. B) $1,360,000. C) $1,176,000. D) $952,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The
The building is subject to a mortgage loan of $280,000, which is to be assumed by the partnership. The partnership agreement provides that Abel and Caine share |
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$1,080,000. |
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B) |
$1,360,000. |
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C) |
$1,176,000. |
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D) |
$952,000. |
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