15) Articles of partnership
A. are required to form a partnership by federal law.
B. are a formal written agreement that states the partners’ relationship.
C. may be an oral agreement.
D. Both b and c
18) Allison and Josh are partners in a business. Allison’s capital is $60,000, and Josh’s capital is $100,000. Profits for the year are $80,000. They agree to share profits and losses as follows:
Allison Josh
Salaries $20,000 $40,000
Interest on capital 10% 10%
Remaining profits and losses 3/5 2/5
Allison’s share of the profits before paying salaries and interest on capital is:
A.
$48,000.
B.
$22,000.
C.
$28,000.
D. $28,400.
19) When two proprietors decide to combine their businesses and form a partnership, GAAP usually requires that noncash assets be taken over at their _______ on the date of the partnership.
A. residual value
B. book value
C. fair market value
D. historical cost
1
Expert's answer
2016-09-29T13:58:03-0400
15) Articles of partnership B. are a formal written agreement that states the partners’ relationship.
18) Allison’s share of the profits before paying salaries and interest on capital is: D. $28,400.
19) When two proprietors decide to combine their businesses and form a partnership, GAAP usually requires that noncash assets be taken over at their C. fair market value
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