Question

Use the Dynamic Exhibit to answer the following questions. 1. True or False. When net income is $240,000, each partner's capital balance increases. a. True b. False 2. True or False. When net income is $20,000, each partner's capital balance increases. a. True b. False » 3. True or False. When there is a net loss, each partner's capital balance decreases a. True b. False The 4. When net income is $20,000, how is income divided? a. $10,000 to Prince, $10,000 to Bernard b. $25,150 to Prince, ($5,150) to Bernard c. $104,850 to Prince, $135,150 to Bernard d. $25,000 to Prince, ($5,000) to Bernard

Answer 1

Question : 1
	When net income is $ 240,000 each partner's Capital balance increases
SOLUTION :
	Above statement is correct because when there is net income than capital balance are increses
	Answer = True
Question : 2
	When net income is $ 2,000 each partner's Capital balance increases
SOLUTION :
	Above statement is correct because when there is net income than capital balance are increses
	Answer = True
Question : 3
	When there is net loss, each partner's Capital balances decreases
SOLUTION :
	Above statement is correct because when there is loss than loss value will distributed to each partner
	Answer = True
Question : 4
	When net income is $ 20,000 how is income divided?
SOLUTION :
	Answer = Option A
	$ 10,000 to Prince , $ 10,000 to Bernard