1. A fixed asset with a cost of $40,000 and accumulated depreciation of S38,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of S3,500, the cost basis of the new asset is: a. $59,000 b. $58,000 c. $60,000 d. $62,000 2. Which of the following is not a characteristic of a general partnership? a. the partnership is created by a contract b. mutual agency c.partners share equally in net income or net losses unless an agreement states differently issolution occurs only when all partners agree 3. X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net loss of $10,000 is allocated to X? a. $10,000 b. $3,000 c. $5,000 d. $7,000