A ratio of 4:2:1 is the same as a.4/10:2/10:1/20 b.40%:20%:10% c.4/7:2/7:1/7 d.7
ID: 2564524 • Letter: A
Question
A ratio of 4:2:1 is the same as
a.4/10:2/10:1/20
b.40%:20%:10%
c.4/7:2/7:1/7
d.7/4:7/2:7/1
Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $42,000 is allocated to Seth?
a.$23,000
b.$0
c.$32,000
d.$20,000
Immediately prior to the admission of Allen, the Sanson-Jeremy Partnership assets had been adjusted to current market prices and the capital balances of Sanson and Jeremy were $80,000 and $120,000, respectively. If the parties agree that the business is worth $240,000, what is the amount of bonus that should be recognized in the accounts at the admission of Allen?
a.$40,000
b.$100,000
c.$80,000
d.$60,000
Explanation / Answer
Correct answer is C.
The denominator is same in all the three numbers.
When we divide or multiply with same number in all the ratios, the original ratio will be same.
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