12. Three years ago, X Company acquired equipment for $100,000. The equipment was depreciated using the straight line method with a 5 year useful life and $10,000 salvage value. Now the equipment has an estimated market value of $50,000 and a replacement value of $55,000. At what net amount should X Company report this equipment on its balance sheet?

a. $36,000

b. $40,000

c. $46,000

d. $50,000

e. $55,000

25. John and Kelly invest $100,000 and $50,000 in a partnership and agree to divide net income with an interest allowance of 5% on the original investment, salary allowances of $10,000 and $15,000 and with the remainder divided equally (all in a given year). If partnership net income is $35,000, what is Kelly's share of net income?

a. $15,000

b. $17,500

c. $18,750

d. $20,000

e. $35,000

30. During the year, ABC Company's cost of goods manufactured is $450,000. Beginning of year finished goods inventory is $120,000 and end of year finished goods inventory is $160,000. What is the cost of goods sold?

a. $290,000

b. $410,000

c. $450,000

d. $490,000

e. $610,000