1.

Flip and Flop have capital balances at the beginning of the year of $100,000 and $80,000, respectively. The partnership agreement has the following provisions regarding the division of net income:

Interest of 5% on capital balances at the beginning of the year

Salary allowances of $20,000 and $25,000 respectively,

Profit loss ratio is 3:2

If net income were $70,000, what would be Flips share of the income?

$34,600

$35,400

$40,600

$42,000

2.

Judy and Nancy are partners sharing profits equally and have the following capital balances:

Judy, Capital	$360,000
Nancy, Capital	270,000

Leah is admitted to the partnership by investing $150,000 for a one-fourth ownership interest. The balance of Nancy's Capital account after Leah is admitted is

$292,500

$270,000

$247,500

$195,000

3.

Judy and Nancy are partners sharing profits equally and have the following capital balances:

Judy, Capital	$200,000
Nancy, Capital	250,000

Leah is admitted to the partnership by investing $150,000 for a one-third ownership interest. The balance of Judy's Capital account after Leah is admitted is

$175,000

$200,000

$250,000

$275,000

3.

Barb, Chris, and Debbie have partnership capital account balances of:

Barb, Capital	$300,000
Chris, Capital	600,000
Debbie, Capital	140,000

The income and loss sharing ratio is 5:4:1. Barb decides to withdraw from the partnership. It is agreed that partnership assets of $260,000 will be used to pay Barb for her partnership interest. The balances of Chris and Debbie's capital accounts after Barb withdraws would be:

Chris, $600,000; Debbie, $140,000

Chris, $632,000; Debbie, $148,000

Chris, $568,000; Debbie, $132,000

Chris, $580,000; Debbie, $120,000

5.

Barb, Chris, and Debbie have partnership capital account balances of:

Barb, Capital	$300,000
Chris, Capital	600,000
Debbie, Capital	140,000

The income and loss sharing ratio is 3:2:1. Debbie decides to withdraw from the partnership. It is agreed that partnership assets of $100,000 will be used to pay Debbie for her partnership interest. The balances of Barb and Chris's capital accounts after Debbie withdraws would be:

Barb, $300,000; Chris, $600,000

Barb, $320,000; Chris, $620,000

Barb, $324,000; Chris, $616,000

Barb, $276,000; Chris, $584,000