1. Partnerships are required to prepare which of the following?

A. balance sheet

B. income statement

C. statement of cash flows

D. all of the above

2. Upon the formation of a partnership, Sally contributed 60% of the net assets, Mary contributed 40%, and Jenny contributed no assets. However, Jenny brings special expertise to the partnership and is entitled to 10% of the partnership. Profits and losses are shared based upon capital balances. Under the agreement, Jennys capital share is:

A. 0%

B. 10%

C. 50%

D. 54%