1/ Cox, North, and Lee form a partnership. Cox contributes $201,000, North contributes $167,500, and Lee contributes $301,500. Their partnership agreement calls for a 6% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $205,200 for its first year, what amount of income is credited to North's capital account?

Multiple Choice

$67,060.

$55,000.

$65,050.

$68,400.

$73,090.

2/ A corporation issued 6,100 shares of $10 par value common stock in exchange for some land with a market value of $92,000. The entry to record this exchange is:

Multiple Choice

Debit Land $92,000; credit Common Stock $61,000; credit Paid-In Capital in Excess of Par Value, Common Stock $31,000.

Debit Land $92,000; credit Common Stock $92,000.

Debit Land $61,000; credit Common Stock $61,000.

Debit Common Stock $61,000; debit Paid-In Capital in Excess of Par Value, Common Stock $31,000; credit Land $92,000.

Debit Common Stock $92,000; credit Land $92,000.

3/ Fetzer Company declared a $0.40 per share cash dividend. The company has 420,000 shares authorized, 399,000 shares issued, and 16,800 shares in treasury stock. The journal entry to record the dividend declaration is:

Multiple Choice

Debit Common Dividends Payable $152,880; credit Cash $152,880.

Debit Retained Earnings $159,600; credit Common Dividends Payable $159,600.

Debit Common Dividends Payable $159,600; credit Cash $159,600.

Debit Retained Earnings $168,000; credit Common Dividends Payable $168,000.

Debit Retained Earnings $152,880; credit Common Dividends Payable $152,880.

4/ A company paid $0.85 in cash dividends per share. Its earnings per share is $2.85, and its market price per share is $27.75. Its dividend yield equals:

Multiple Choice

3.4%.

3.1%.

33.5%.

29.8%.

10.3%.