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Question 1: A, B, and C are partners who contributed : A $50,000; B $30,000 and C $20,000. The Partnership Agreement specifies that profit is to be shared in proportion to contributed capital. If the partnership earned a net income of $40,000 in 2018. What is B's Share of the net Income?
Option a. $20,000
Option b. $18,000
Option c. $12,000
Option d. $8,000
Option e. None of the above.
On January 1, 2016, Big Company spent $350,000 for a 20 percent interest in Little Company. There is no difference between the purchase price and the book value of the net assets acquired. Little reports net income of $300,000 and pays dividends $100..
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