1. Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices and the capital balances of Smith and Jones were $61,700 and $66,800, respectively. If the parties agree that the business is worth $171,300, what is the amount of bonus that should be recognized in the accounts at the admission of Abbott?

a.$42,800

b.$109,600

c.$104,500

d.$21,400

.2. Samuel and Darci are partners. The partnership capital for Samuel is $66,000 and that of Darci is $84,600. Josh is admitted as a new partner by investing $52,700 cash. Josh is given a 20% interest in return for his investment. The amount of the bonus to the old partners is

a.$12,040

b.$0

c.$52,700

d.$67,767

3 . Lambert invests $11,919 for a 1/3 interest in a partnership in which the other partners have capital totaling $40,926 before admitting Lambert. After distribution of the bonus, what is Lambert's capital?

a.$26,423

b.$3,973

c.$11,919

d.$17,615

.4 Jackson and Campbell have capital balances of $100,000 and $300,000, respectively. Jackson devotes full time and Campbell devotes one-half time to the business. Determine the division of $150,000 of net income when there is no reference to division in the partnership agreement.

a.$75,000 and $75,000

b.$37,500 and $112,500

c.$112,500 and $37,500

d.$100,000 and $50,000

5 Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries of $18,300 and $41,400, respectively. If the partnership suffers a $15,300 loss, by how much would Jason's capital account increase?

a.$30,200

b.$41,400

c.$16,400

d.$36,300

6 Tucker and Titus are partners who share income in the ratio of 3:1. Their capital balances are $46,100 and $65,600, respectively. The partnership generated net income of $50,000 for the year. What is Tucker's capital balance after closing the revenue and expense accounts to the capital accounts?

a.$100,320

b.$50,160

c.$66,880

d.$83,600

7 Tanner and Teresa share income and losses in a 2:1 ratio after allowing for salaries of $39,900 to Tanner and $69,300 to Teresa. Net income of the partnership is $135,600. Income should be divided as follows:

a.Tanner, $83,100; Teresa, $52,500

b.Tanner, $57,500; Teresa, $78,100

c.Tanner, $52,500; Teresa, $83,100

d.Tanner, $53,500; Teresa, $82,100

8 Use the information below to answer the question that follow.

Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $6,700 and a fair market value of $12,900. Kelsey will invest a building with a book value of $30,200 and a fair market value of $51,100.

What amount will be recorded to Kelsey's capital account?

a.$51,100

b.$30,200

c.$12,900

d.$6,700