Jack holds an ownership interest of 59% and Teresa holds an ownership interest o

Question

Jack holds an ownership interest of 59% and Teresa holds an ownership interest of 41% in the J and T Partnership. This year, in order to further develop the business, Jack contributes an additional $ 7,200 and Teresa contributes an additional $ 2, 900 to the partnership. Which of the following is true of this scenario?

A. Individual contribution of $ 7,200 by Jack and $ 2 ,900 by Teresa will be recorded.

B.59% of Jack's contribution and 41% of Teresa's contribution will be recorded.

C.Either the total contribution of $ 10,100 or the contribution in relationship to the ownership interest ratio will be recorded.

D.Only the total contribution of $ 10,100 will be recorded.

Explanation / Answer

As the individual contribution is being done by jack and teresa that will add to their capital

So A is the correct answer as the $7,200 by Jack and $2,900 By Teresa will be recorded as individual contribution

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