1) Most employers use payroll checks drawn on a special bank account specifically set up for paying the payroll.

True

False

2) Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000.

What amount will be recorded to Kelseys capital account?

	a.	$40,000
	b.	$14,000
	c.	$44,000
	d.	$24,000

3) When a new partner is admitted to a partnership, all partnership assets should be revised to reflect current values.

True

False

4) One of the more popular defined contribution plans is the 401k plan.

True

False

5) Xavier and Yolanda 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 20%; salary allowances of $34,000 and $26,000, respectively; and the remainder to be divided equally. How much of the net income of $120,000 is allocated to Yolanda?

	a.	$60,000
	b.	$66,000
	c.	$61,000
	d.	$46,000