1) Rice, Hepburn, and DiMacro formed a partnership with Rice contributing $60,000, Hepburn contributing $50,000 and DiMacro contributing $40,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $75,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to DiMarco's captial account? a. $20,000 b. $25,000 c. $30,000 d. $40,000 e. $75,000 2) Shelby and Mortonson formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Shelby to receive a $60,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $135,000, then Shelby and Mortonson's respective shares are: a. $67,500; $67,500 b. $92,500; $42,500 c. $57,857; $77,143 d. $90,000; $40,000 e. $35,000; $100,000 3) Nguyen invested $100,000 and Hansen invested $200,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 pery year salary allowance to Nguyen and a 40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns $105,000 in income are: a. $52,500 to Nguyen; 452,500 to Hansen b. $35,000 to Nguyen; $70,000 to Hansen c. $57,000 to Nguyen; $47,500 to Hansen d. $42,500 to Nguyen; $62,500 to Hansen e. $70,000 to Nguyen; $60,000 to Hansen 4)The partnership agree,ent for Smith Wesson & Davis, a general partnership, provided that profits be shared between the partners in the ratio of their financial contributions to the partnership. Smith contributed $100,000, Wesson contributed $60,000 and Davis contributed $20,000. In the partnership's first year of operation, it incurred a loss of $210,000. what amount of the partnership's loss, rounded to the nearest dollar, should be absorbed by smith? a. $70,000 b. $116,667 c. $23,333 d. $105,000 e. $52,500 5) Regina Harrison is a partner in Pressed for Time. An analysis of Regina Harrison's capital account indicates that during the most recent year, she withdrew $20,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equtiy contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year? a. $124,000 b. $144,000 c. $192,000 d. $176,000 e. 4134,000 6) The following information is available on Stewart Enterprises, a partnership, for the most recent fiscal year: Total partnership capital at beginning of the year...$180,000 Partnership net income for the year...$150,000 Withdrawals by partners during the year...$120,000 Additional investments by partners during the year...$60,000 There are three partners in Stewart Enterprises: Stewart, Tedder and Armstrong. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respecitvely. Compute the endeding capital balances of the three partners. a. Stewart=$108,000; Tedder=$54,000; Armstrong=$108,000 b. Stewart=$90,000; Tedder=$90,000; Armstrong=$90,000 c. Stewart=$204,000; Tedder=102,000; Armstrong=$204,000 d. Stewart=$84,000; Tedder=$102,000; Armstrong=$84,000 e. Stewart=$60,000; Tedder=$30,000; Armstrong=$60,000