Ch 14 Homework - Results Reporter Out of 15 questions, you...

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Unformatted text preview: Results Reporter Out of 15 questions, you answered 15 correctly with a final grade of 100% 15 correct (100%) 0 incorrect (0%) 0 unanswered (0%) Your Results: The correct answer for each question is indicated by a . 1 CORRECT Which one of the following is a reason for the popularity of partnerships as a legal form for businesses? A) Partnerships avoid the double taxation of income that is found in corporations. B) Partnerships require a written Articles of Partnership. C) In some cases, losses may be used to offset gains for income tax purposes. D) Partners in partnerships are not subject to unlimited liability. E) Partnerships avoid mutual agency. 2 CORRECT Item is based on the following information: Algood and Gaw began a partnership on January 2 of the current year. Algood invested cash of $150,000 as well as inventory costing $30,000, but with a current appraised value of $50,000. Gaw contributed land with a $60,000 book value and a $90,000 fair market value. The partnership also accepted responsibility for a $70,000 note payable owed in connection with the land. The partners agreed to begin operations with equal capital balances. Assuming that the bonus method was used by this partnership, what was Algood's initial capital balance? A) $200,000 B) $145,000 C) $110,000 D) $120,000 E) $ 85,000 Feedback: 3 CORRECT Item is based on the following information: Algood and Gaw began a partnership on January 2 of the current year. Algood invested cash of $150,000 as well as inventory costing $30,000, but with a current appraised value of $50,000. Gaw contributed land with a $60,000 book current appraised value of $50,000....
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This note was uploaded on 08/25/2011 for the course ACCT 440 taught by Professor Suresh during the Spring '11 term at Copenhagen Business School.

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Ch 14 Homework - Results Reporter Out of 15 questions, you...

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