Operation of the partnership prevail

Assignment Help Accounting Basics

Reference no: EM1310261

Caesar and Junius orally agreed to become partners in a food testing business. Caesar, who had experience in food testing work, was to operate the business. Junius was to take no active part but was to contribute the entire $500,000 capitalization. Caesar worked ten hours a day at the king’s house, for which he was paid nothing. Nevertheless, despite Caesar’s best efforts, the business failed. The $500,000 capital was depleted, and the partnership owed $500,000 in debts. Prior to the failure of the partnership business, Junius became personally insolvent; consequently, the creditors of the partnership collected the entire $500,000 indebtedness from Caesar, who was forced to sell his home and farm to satisfy the indebtedness. Junius later regained his financial responsibility, and Caesar brought an appropriate action against Junius for (a) one-half of the $500,000 he had paid to partnership creditors and (b) one-half of $80,000, the reasonable value of Caesar’s services during the operation of the partnership. Who will prevail and why?

Reference no: EM1310261

Questions Cloud

Explain what atoms on mars must be composed of : A 2.00 syringe has an inner diameter of 5.00, a needle inner diameter of 0.270, and a plunger pad diameter (where you place your finger) of 1.20. A nurse uses the syringe to inject medicine into a patient whose blood pressure is 140/100. Suppose the ..

Objective questions on quality management : Objectiv and multiple choice questions on marketing research.

What is the emf induced in coil : Use this technique to find formula for the intensity of a sound, in terms of sound level and the reference intensity. There will be a quantity involved in the calculations. When you enter your answer, leave off the unit.

Determine the firm''s cost of retained earnings : Determine the firm's cost of retained earnings and the cost of new common equity. and If Dempere's after-tax cost of debt is 8%, what is the WACC with retained earnings? With new common equity?

Operation of the partnership prevail : aesar and Junius orally agreed to become partners in a food testing business. one-half of $80,000, the reasonable value of Caesar’s services during the operation of the partnership. Who will prevail and why?

What is angular width of the beam : If the initial temperature of the horseshoe is 450 °C, and the initial temperature of the water is 45° C, what is the equilibrium temperature of the system? Presume no heat is exchanged with the surroundings.

Computation of degree of operating leverage : Computation of degree of operating leverage and the current degree of financial leverage and forecast of sales dropped

Compute the book-value weights for each source of capital : Compute the book-value weights for each source of capital and Compute the market-value weights for each source of capital.

What is the ratio of the man''s kinetic energy : When people sleep, their metabolic rate is about 2.6 10-4 C/(s • kg). How many Calories does an 83 kg person metabolize though getting a good night's sleep of 9.0 hours.

User Account

All Pages