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Question - Jack, Sabrina, and Cam each have a 390,000 capital balance. They share profits and losses as follows 2:6:2: to Jack, Sabrina, and Cam, respectively. Suppose Cam is withdrawing from the business.
Requirements -
1. Journalize the withdrawal of Cam if the partnership agrees to pay 390,000 cash.
2. Journalize the withdrawal of Cam if the partnership agrees to pay 210,000 cash.
If the hurricane hits our business, we can reasonably be assuredthat we will incur a $2 million loss. We want to finish closing March's books. Should we record the $2million loss? Why or why not?
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