Purchase Solution

Duke and L. Duke operated a general partnership performing m

Not what you're looking for?

Ask Custom Question

Duke and L. Duke operated a general partnership performing minor automobile repairs in their small rural town for nearly six years. During the past four moths the cousins have noticed a steady decline in customers thanks to the new Wal-Mart that was built about ten miles away that offers one stop shopping for high quality low priced goods while you wait for your tire rotation, brake job, battery replacements, etc. All the Dukes have for their clients to look at is a field and a few festive chickens! As such, this month the Duke's industrious accountant R.P. Coltrane figured that they would have a $6.000 loss. B. Duke's Capital account shows $1,400 and L. Duke's Capital account shows $3,600 but their oral partnership agreement made no mention of how profits/losses would be divided.
How much of the loss will each of the Duke cousins bear?
Answer
A. B. Duke will bear $3,000 and L. Duke will bear $3,000 of the loss
B. B. Duke will bear $4,320 and L. Duke will bear $1,680 of the loss
C. B. Duke will bear $1,680 and L. Duke will bear $4,320 of the loss
D. None of the other answers
E. B. and L. Duke will bear $3,000 and R. P. Coltrane will bear $3,000 of the loss because he should have warned them about what was going to happen in their business if they don't get on the ball.

Purchase this Solution
Solution Summary

The solution discusses the loss that each of the Duke cousins will bear based on the scenario.

Solution Preview

The capital contributions = $5,000. This means that Duke owns 28% of the account and the other brother owns 72% of the account. The loss is for $6,000, which means that the first brother will take 1,680 of the loss, and the other brother will take 4,320 of the loss. It would be ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Understanding SWOT analysis and strategic management plan

    353068 Understanding of a SWOT analysis and to apply it a chosen facility in the development of a strategic management plan Understanding of a SWOT analysis and to apply it a chosen facility in the development of a strategic management plan (Duke University

  • Federal Reserve governors; yield curve

    The other members are: Donald L Kohn, Kevin M Warch, Elizabeth A. Duke, and Daniel Tarullo. c. 1.What experiences and/or degrees do all members have? Bernanke was the chairman of Princeton's economics department prior to his appointment.

  • DukDuke Plumbing and Wallpaper Company is a corporation that

    386388 Duke Plumbing and Wallpaper Company is a corporation that has been in business since 1990. During the current year, it has the following property transactions: a. A warehouse purchased in 2000 for $200,000 is sold for $180,000.

  • Griggs vs. Duke Powers Company

    Retrieved February 22, 2016, from http://www.naacpldf.org/case/griggs-v-duke-power-co Rosenthal, L, (2013). Saving disparate impact. Cardozo Law Review, 34 (6), 2157-2209. This solution analyzes the ruling in Griggs versus Duke Powers.

  • Griggs v. Duke Power Company 401 U.S. 424 (1971)

    Duke Power Company 401 U.S. 424 (1971) For the case Griggs v. Duke Power Company 401 U.S. 424 (1971), discuss the facts, the issue, and the court action and provide an analysis. A good case to present to your class is Griggs v.

  • Interpret Southwest Airlines' Balance Sheet

    On January 1, 2008, Duke purchased a computer system and related accessories at a cost of $1,725,000. The estimated useful life of the system is five years. f.

  • Used car business: S. Corporation or limited liability

    This status allows the taxation of the company to be similar to a partnership or sole proprietor as opposed to paying taxes based on a corporate tax structure. In general, S corporations do not pay any federal income taxes.

  • organization's capacity utilization plan

    The new programs and plans under capacity utilization clearly reflect that Duke has a mission to remain on the cutting edge of patient care as well as up to date with research and education.

  • Duke Children's Hospital Implementing the Balanced Scorecard

    Evaluation: Did Duke Children's Hospital do a good job in designing and using its balanced scorecard? Agree or disagree with the issue, then defend your position.

View More Related Solutions