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  1. #1
    MEP 4 lyfe hbkfan's Avatar
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    Final Exam Help Will rep the first person who gives right answer 3k

    1. As part of the initial investment, a partner contributes office equipment that had a cost of 20,000 and on which accumulated depreciation of 12,500 had been recorded. If the partners agree on a valuation of 9,000 for the equipment, what amount should be debited to the office equipment account?

    a. 7,500
    b. 9,000- this is what I think is right
    c. 12,500
    d.20,000

    2. Chip and Dale agree to form a partnership. Chip is to contribute $ 50,000 in assets and to devote one-half time to the partnership. Dale is to contribute 20,000 and to devote full time to partnership. How will Chip and Dale share in the division of net income or not loss?

    a. 5:2
    b. 1:2
    c. 1:1- this is what I think is right
    d. 2.5:1
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    You typed this all into a phone?
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    Math: High school


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    Registered User karma_jesus45's Avatar
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    this is business math so not to sure to answer.
    I rep back with whatever I have
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  5. #5
    yaaaa digggg? bruh's Avatar
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    Originally Posted by hbkfan View Post
    1. As part of the initial investment, a partner contributes office equipment that had a cost of 20,000 and on which accumulated depreciation of 12,500 had been recorded. If the partners agree on a valuation of 9,000 for the equipment, what amount should be debited to the office equipment account?

    a. 7,500
    b. 9,000- this is what I think is right
    c. 12,500
    d.20,000

    2. Chip and Dale agree to form a partnership. Chip is to contribute $ 50,000 in assets and to devote one-half time to the partnership. Dale is to contribute 20,000 and to devote full time to partnership. How will Chip and Dale share in the division of net income or not loss?

    a. 5:2
    b. 1:2
    c. 1:1- this is what I think is right
    d. 2.5:1
    #1 A. 7,500. I'm going off the top of my head, but I think you have to use the partner's basis for contributed capital. Partner can't overstate asset.
    #2 I think you're right.
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    Lmao, is this for your GED?
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  7. #7
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    Originally Posted by hbkfan View Post
    1. As part of the initial investment, a partner contributes office equipment that had a cost of 20,000 and on which accumulated depreciation of 12,500 had been recorded. If the partners agree on a valuation of 9,000 for the equipment, what amount should be debited to the office equipment account?

    a. 7,500
    b. 9,000- this is what I think is right
    c. 12,500
    d.20,000

    2. Chip and Dale agree to form a partnership. Chip is to contribute $ 50,000 in assets and to devote one-half time to the partnership. Dale is to contribute 20,000 and to devote full time to partnership. How will Chip and Dale share in the division of net income or not loss?

    a. 5:2
    b. 1:2
    c. 1:1- this is what I think is right
    d. 2.5:1
    There must be some underlying factors to these problems that we don't /cant understand. I specifically mean that obtain to your class/ line of work.

    Lets look at PROBLEM 1

    20,000 Dollar Office equipment
    12,500 depreciation
    Partners agree on a 9000$ value for the equipment.

    Now take 20000-12500=7500

    I have no idea How or why its possible they decided its worth 9000 when its clearly only worth 7500.

    My Opinion on answer: 7500 ( just because that's what you know! the value of the equipment is. However use the knowledge you have to decide if you think all of this applies.)

    PROBLEM 2

    Chip: $50,000 half his time invested.

    Dale:20,000 Full Time invested.

    Lets look at our choices.

    a. 5:2
    b. 1:2
    c. 1:1
    d. 2.5:1

    If you want to get technical, None of those are mathematically correct. However the closest answer, I would agree with you and say its C 1:1.

    Reason I say that is, Their time and money weighs out, however Chip does bring $5,000 more to then, what would be half of what dale is bringing. Sorry that was confusing.. 50,000/2=25,000, Dale is only bringing 20,000.

    The other answers really aren't even possible. Hope this helped
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  8. #8
    Registered User cuongp's Avatar
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    Originally Posted by hbkfan View Post
    1. As part of the initial investment, a partner contributes office equipment that had a cost of 20,000 and on which accumulated depreciation of 12,500 had been recorded. If the partners agree on a valuation of 9,000 for the equipment, what amount should be debited to the office equipment account?

    a. 7,500
    b. 9,000- this is what I think is right
    c. 12,500 - you recorded amortization of 12500, how could your equipment be worth -3500? (assuming that you recorded its worth as 9000)
    d.20,000

    2. Chip and Dale agree to form a partnership. Chip is to contribute $ 50,000 in assets and to devote one-half time to the partnership. Dale is to contribute 20,000 and to devote full time to partnership. How will Chip and Dale share in the division of net income or not loss?

    a. 5:2 - if nothing was in the agreement between the two, then its based on investment - chip would receive more profit, if the company was profitable because he invested more money, likewise, he would lose more money if the company realized a loss
    b. 1:2
    c. 1:1- this is what I think is right
    d. 2.5:1
    3 characters minimum.
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  9. #9
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    Originally Posted by bruh View Post
    #1 A. 7,500. I'm going off the top of my head, but I think you have to use the partner's basis for contributed capital. Partner can't overstate asset.
    #2 I think you're right.

    #1 B
    #2 B


    2easy.

    rep
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  10. #10
    MEP 4 lyfe hbkfan's Avatar
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    Lol my math skills do suck balls but I made an A in business cal so suck on them balls but this is for accounting 2 final brahs. Thanks for the help will rep people who gave serious answers. Reason I choose 9,000 is because that's what they decided was the value of the item but 12,500 was already recorded as the depreciation so I was really trying to see if because the 12,500 has been recorded would I need to choose that or what they choose as the value of the item
    Last edited by hbkfan; 05-01-2010 at 08:56 AM.
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  11. #11
    Registered User cuongp's Avatar
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    Originally Posted by mworrel1989 View Post
    There must be some underlying factors to these problems that we don't /cant understand. I specifically mean that obtain to your class/ line of work.

    Lets look at PROBLEM 1

    20,000 Dollar Office equipment
    12,500 depreciation
    Partners agree on a 9000$ value for the equipment.

    Now take 20000-12500=7500

    I have no idea How or why its possible they decided its worth 9000 when its clearly only worth 7500.

    My Opinion on answer: 7500 ( just because that's what you know! the value of the equipment is. However use the knowledge you have to decide if you think all of this applies.)

    PROBLEM 2

    Chip: $50,000 half his time invested.

    Dale:20,000 Full Time invested.

    Lets look at our choices.

    a. 5:2
    b. 1:2
    c. 1:1
    d. 2.5:1

    If you want to get technical, None of those are mathematically correct. However the closest answer, I would agree with you and say its C 1:1.

    Reason I say that is, Their time and money weighs out, however Chip does bring $5,000 more to then, what would be half of what dale is bringing. Sorry that was confusing.. 50,000/2=25,000, Dale is only bringing 20,000.

    The other answers really aren't even possible. Hope this helped
    $7500 would be the answer, if they recorded the value of the equipment to be $20000, but they changed their minds and assuming that its a fixed line amortization, they would have to value their assests as $12500 to match the amortization

    time=nothing

    logic is wrong brah, imagine investing in stocks
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  12. #12
    WTB abs, PST! Tadi147's Avatar
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    Originally Posted by hbkfan View Post
    1. As part of the initial investment, a partner contributes office equipment that had a cost of 20,000 and on which accumulated depreciation of 12,500 had been recorded. If the partners agree on a valuation of 9,000 for the equipment, what amount should be debited to the office equipment account?

    a. 7,500
    b. 9,000- this is what I think is right
    c. 12,500
    d.20,000
    I may have read this wrong, but this is what I got out of it...

    The original cost of the equip was 20,000. It had depreciated by 12,500 so therefore its current value is 7,500. Both partners agree that the equipment is valued at 9,000. I think the bold means that they agree they are getting a good deal, they would have paid up to 9000 for it, but they are getting it for 7,500? Just my 2c.

    Anyway I would choose 7,500.

    For question number two, I'd choose 1:1.
    Last edited by Tadi147; 05-01-2010 at 09:04 AM.
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    Registered User mworrel1989's Avatar
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    I actually don't see the same way as you do. Time is the most valuable thing ever known to man. Time is the only thing you cannot get back.

    I actually am an avid investor as well. Time is very important when dealing with stocks. Time has to pass for things to happen your stock to go up and down. That company has to progress or digress. See what I'm saying.

    Time= Most valuable thing known to man.

    very common phrase

    time is money

    =) just my 2cents
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    Registered User cuongp's Avatar
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    Originally Posted by mworrel1989 View Post
    I actually don't see the same way as you do. Time is the most valuable thing ever known to man. Time is the only thing you cannot get back.

    I actually am an avid investor as well. Time is very important when dealing with stocks. Time has to pass for things to happen your stock to go up and down. That company has to progress or digress. See what I'm saying.

    Time= Most valuable thing known to man.

    very common phrase

    time is money

    =) just my 2cents
    yeah, but nobody cares about how much time you put it, its how much money you can put out

    example: you research for weeks and weeks on a particular stock symbol, based on your research, you believe that the stock price will go up in the next couple of weeks

    you invest $20k in the company

    john smith is strolling through lists of stock symbols and happens to see the exact same symbol that you just bought

    he uses his intuition, based on no research, to buy the stock symbol as well

    he invests $50k in the company

    stock prices double over the next couple of months and you get a profit of your initial investment, and john gets a profit of his initial investment

    see what i mean?

    unless it was stated in their contract or whatever, profit/loss will be based on assets and other monetary investments, you should know this....
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    WTB abs, PST! Tadi147's Avatar
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    Originally Posted by mworrel1989 View Post
    I actually don't see the same way as you do. Time is the most valuable thing ever known to man. Time is the only thing you cannot get back.

    I actually am an avid investor as well. Time is very important when dealing with stocks. Time has to pass for things to happen your stock to go up and down. That company has to progress or digress. See what I'm saying.

    Time= Most valuable thing known to man.

    very common phrase

    time is money

    =) just my 2cents
    With that said, it seems that person 1 invested a little over twice as much money to work half the amount of time that person 2 will work. Seems like 1:1 would be the correct answer.
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