A contractor sends a progress billing to a city requesting payment of $4,000,000 for work done on a new fire station for the city. The city approves the payment less a 10 percent retainage but has not yet written a check to the contractor. What journal entry should be riade in the city's Capital Projects Fund? A) Expenditures construction costs 4,000,000 Construction contracts payable 4,000,000
B) Expenditures construction costs 4,000,000 Retairage payable 400,000 Construction contracts payable 3,600,000
C) Capital assets—fire station 4,000,000 Retainage payable 400,000 Construction contracts payable 3,600,000
D) Expenditures-construction costs 3,600,000 Construction contracts payable 3,600,000

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.