1/ Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capital balance for the current year is $129,000, and Atkins' beginning partnership capital balance for the current year is $286,000. The partnership had net income of $306,000 for the year. Barber withdrew $47,000 during the year and Atkins withdrew $120,000. What is Atkins's return on equity?

Multiple Choice

68.3%

48.0%

50.6%

53.5%

25.3%

2/ Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $54,500, and Martin's capital balance $51,500. Hewlett and Martin have agreed to share equally in income or loss. The existing partners agree to accept Black with a 20% interest. Black will invest $36,900 in the partnership. The bonus that is granted to Hewlett and Martin equals:

Multiple Choice

$4,160 each.

$0, because Hewlett and Martin actually grant a bonus to Black.

$1,897 each.

$3,690 each.

1,897 to Hewlett; $1,845 to Martin.