147. Cox, North, and Lee form a partnership. Cox contributes $192,000, North contributes $160,000, and Lee contributes $288,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $169,000 for its first year, what amount of income is credited to Lee's capital account? (Do not round your intermediate calculations.)

• $58,200.

• $76,050.

• $50,700.

• $42,250.

• $56,333.

148. Farmer and Taylor formed a partnership with capital contributions of $280,000 and $330,000, respectively. Their partnership agreement calls for Farmer to receive a $86,000 per year salary. The remaining income or loss is to be divided equally. Assuming net income for the current year is $231,000, the journal entry to allocate net income is:

• Debit Income Summary, $231,000; Credit Farmer, Capital, $194,000; Credit Taylor, Capital, $37,000.

• Debit Income Summary, $231,000; Credit Farmer, Capital, $158,500; Credit Taylor, Capital, $72,500.

• Debit Income Summary, $231,000; Credit Taylor, Capital, $158,500; Credit Farmer, Capital, $72,500.

• Debit Income Summary, $231,000; Credit Farmer, Capital, $115,500; Credit Taylor, Capital, $115,500.

• Debit Income Summary, $231,000; Credit Farmer, Capital, $106,140; Credit Taylor, Capital, $28,860.

160. Wallace, Simpson, and Prince are partners and share income and losses in a 2:6:2 ratio. The partnership's capital balances are Wallace, $69,680; Simpson, $80,400; and Prince, $91,120. Royal is admitted to the partnership on July 1 with a 10% equity and invests $26,800. The partnership would record the admission of Royal into the partnership as:

• Debit Cash $16,800; debit Wallace, Capital $2,000; debit Simpson, Capital, $6,000; debit Prince, Capital $2,000; credit Royal, Capital $26,800.

• Debit Cash $26,800; credit Royal, Capital $26,800.

• Debit Cash $5,360; credit Prince, Capital $5,360.

• Debit Cash $26,800; credit Simpson, Capital $2,680, credit Royal, Capital $24,120.

• Debit Wallace, Capital $5,360; debit Simpson, Capital, $16,080; debit Prince, Capital $5,360; credit Royal, Capital $26,800.

165.

On January 1, a company issues bonds dated January 1 with a par value of $250,000. The bonds mature in 3 years. The contract rate is 6%, and interest is paid semiannually on June 30 and December 31. The market rate is 7%. Using the present value factors below, the issue (selling) price of the bonds is:

n=		i=			Present Value of an Annuity			Present value of $1
3		6.0	%			2.6730		0.8396
6		3.0	%			5.4172		0.8375
3		7.0	%			2.6243		0.8163
6		3.5	%			5.3286		0.8135

• $243,340.

• $256,661.

• $203,375.

• $39,965.

• $250,000.