After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Peluso, $20,000; Odin, $30,000; Nazaro, $45,000 . Partners share profits and losses as follows: Peluso, 20%; Odin, 30%; and Nazaro, 50%. If Peluso purchased Nazaro's interest
in the partnership for $40,000 cash, the amount entered in Nazaro's capital account is a
a. $5,000 debit.
b. $40,000 debit.
c. $40,000 credit.
d. $45,000 debit.
d
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"A" receives a life estate for the life of "X". "A" dies before "X". The estate:
a. ceases to exist b. reverts to the original grantor c. vests in "X" for his life d. vests in the heirs of "A"
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The ________ requirement of negotiable instruments says that negotiable instruments must be able to be easily transported between areas
A) portability B) permanence C) signature D) transparency
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