their business partnership, George has an ownership interest of 58% and Ben has an ownership interest of 42%. In the current year, they urchase equipment for $10,400. In order to finance the equipment purchase, George makes a cash contribution of $6,900 and Ben makes cash contribution of $3,500 to the partnership. Based on the information provided, which of the following is TRUE regarding the artnership balance sheet? O George, Capital will increase by $10,400 and Ben, Capital will remain unchanged. O George, Capital will increase by $6,900 and Ben, Capital will increase by $3,500. O George, Capital will increase by $6,032 and Ben, Capital will increase by $4,368. O Both George, Capital and Ben, Capital will increase by $10,400.
their business partnership, George has an ownership interest of 58% and Ben has an ownership interest of 42%. In the current year, they urchase equipment for $10,400. In order to finance the equipment purchase, George makes a cash contribution of $6,900 and Ben makes cash contribution of $3,500 to the partnership. Based on the information provided, which of the following is TRUE regarding the artnership balance sheet? O George, Capital will increase by $10,400 and Ben, Capital will remain unchanged. O George, Capital will increase by $6,900 and Ben, Capital will increase by $3,500. O George, Capital will increase by $6,032 and Ben, Capital will increase by $4,368. O Both George, Capital and Ben, Capital will increase by $10,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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44. Help me selecting the right answer. Thank you
Transcribed Image Text:In their business partnership, George has an ownership interest of 58% and Ben has an ownership interest of 42%. In the current year, they purchase equipment for $10,400. In order to finance the equipment purchase, George makes a cash contribution of $6,900 and Ben makes a cash contribution of $3,500 to the partnership. Based on the information provided, which of the following is TRUE regarding the partnership balance sheet?
- ○ George, Capital will increase by $10,400 and Ben, Capital will remain unchanged.
- ○ George, Capital will increase by $6,900 and Ben, Capital will increase by $3,500.
- ○ George, Capital will increase by $6,032 and Ben, Capital will increase by $4,368.
- ○ Both George, Capital and Ben, Capital will increase by $10,400.
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