17Chonse Howare partners compensated in a partnershta? A cach partner receives a cash payment on 1731 b cach partner gets a salary paid in cash c. each partner's capital receives a portion of the net income or loss in closing d. interest expense is debited, and each partner receives the interest in cash 13 Choose: How are assets contributed by the partners valued in the partnership? A. valuec at original cost ? b. valued at original cost minus accumulated depreciation c.valued at fair market value d. valued at an amount specified by the contributing partner 14 Chouse: How are Research and Developererit costs recorded and un which statement will they be reported? A. an asset reported on the balance sheet b. an expense reported on the income statement c.aliability reported on the balance sheet d. nore of these 15 Choose which of the following depreciation methods is accelerated? A straight line b.units of activity c double declining balance e. all of these are accelerated ? c. 16 Choose when constructing a depreciation schedule, the accountant must remember that the book value at the end of the asset's life must be equal to the a. Salvage value b. Lust L. Look value d. depreciable cust 1 Choose: Clark sold an asset this year for $4.000, but the book value of the asset was $7.000. What effect will this transaction have on the income statement for the year? A. an increase in net income b. a decrease in net Income c. no effect on net income d. we don't know 18 C. 60.40 d. 50.50 20 Choose Social Security is a government program that a provides income te citizens after they retire b pays people when they become unemployed c. provides vacation pay to workine people d none of these d 19 Choose Tom and Jerry went into business as a partnership with Tom Investing cash of $90,000 and Jerry Investing $10.000. They had no partnership agreement. If they incur a $20,000 loss, how must they split the loss? A. in the ratio of their investment b. 90.10 ? A Choosed Social Security taxes (Social Security and Medicare) are paid by... 2. cmployee only b.cmployer and cmployee c. neither employer nor employce d. cmployer only 21 Chooses Grandfork Company purchasei a patent for $32,000 on July 1, 2020. The patent has a life of 8 years, no salvage value. If Grandfork a $, 8 records patent amortization on December 31, 2020, how much Patent Expense will be recorded a. $32,000 L. $2,000 c. $4,000 d. None of these 22 Choose Libby Mining purchased an iron mine for $3,000,000. The mine is expected to produce 100,000 tons of iron ore during its life. This year, Libby : . . , extracted 20.000 tons of ore. How much depletion expense should Libby record this year? a $ 30,000 b. S600,000 c. $3,000,000 d. $300,000 23 Choose Williams purchesed equipment with a cost of $28,000, life of 5 years and salvage value of $3,000. What is the depreciable cost of the equipment? a $28,000 b. b. $5,000 C. 20 d. $25,000 21 Choose what is the name of the payroll document published by the Internal Revenue Service that contains the tax rates and withholding information used by payroll managers? a. Your Payroll Pal b. Publication 15 Circular E. c. Your Role in Payroll bE d. 50 Shades of Payroll d Choose which at the following is an accelerated depreciation method that is used only for tax purposes? a MACRS b. Straight Line c Units of Activity d Double Declining Balance
