Question
In their businesspartnership, George has an ownership interest of59% and Ben has an ownership interest of41%. In the currentyear, they purchase equipment for$10,100. In order
In their businesspartnership, George has an ownership interest of59% and Ben has an ownership interest of41%. In the currentyear, they purchase equipment for$10,100. In order to finance the equipmentpurchase, George makes a contribution of$7,400 and Ben makes a contribution of$2,700 to the partnership. Based on the informationprovided, which of the following is true regarding the partnership balancesheet?
A.
BothGeorge, Capital andBen, Capital will increase by$10,100.
B.
George, Capital will increase by$5,959 andBen, Capital will increase by$4,141.
C.
George, Capital will increase by$7,400 andBen, Capital will increase by$2,700.
D.
George, Capital will increase by$10,100 andBen, Capital will remain unchanged.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
