Question: 1) The Calvin-Dogwood Partnership owns inventory that was purchased for $90,000, has a current replacement cost of $85,900, and is priced to sell for $125,000. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted?
2) The accumulated depletion of a natural resource is reported on the
A) income statement as an increase in revenue
B) balance sheet as depreciation from the cost of the resource
C) income statement as a deduction from revenues
D) balance sheet as a deduction from the cost of the resource
3) Harriet, Mickey, and Zack decide to liquidate their partnership. All assets are sold and the liabilities are paid. Following these transactions, the capital balances and profit and loss percentages are as follows: Harriet, $27,000 and 30%; Mickey, $(12,000) and 40%; Zack, $43,000 and 30%. Mickey is unable to contribute any assets to reduce the deficit. How much cash will Harriet receive as a result of the partnership liquidation?
4) A partnership liquidation occurs when
A) a partner dies
B) a new partner is admitted
C) the ownership interest of one partner is sold to a new partner
D) the assets are sold, liabilities paid, and business operations terminated