18.	Travis, Jennifer, and Henry have partnership capital account balances of $150,000, $300,000 and $70,000, respectively. The profit sharing ratio is Travis, 50%; Jennifer, 40%; and Henry, 10%. Travis wishes to withdraw from the partnership and it is agreed that partnership assets of $120,000 will be used to pay Travis for her partnership interest. The balances of Jennifer's and Henry's Capital accounts after Travis's withdrawal would be
	A)	Jennifer, $300,000; Henry, $70,000.	C)	Jennifer, $276,000; Henry, $64,000.
	B)	Jennifer, $324,000; Henry, $76,000.	D)	Jennifer, $285,000; Henry, $55,000.

19.	Hill invests $30,000 in cash (admission by investment) in the Morgan-Carr partnership to acquire a 1/4 interest. In this case
	A)	the accounting will be the same as a purchase of an interest.
	B)	the total net assets of the new partnership are unchanged from the previous partnership.
	C)	the total capital of the new partnership is greater than the total capital of the old partnership.

20.

Sam Kirby invests personally owned equipment, which originally cost $30,000 and has accumulated depreciation of $6,000 in the Kirby and Gosse partnership. Both partners agree that the fair value of the equipment was $25,000. The entry made by the partnership to record Kirby's investment should be

A)

Equipment		30,000
	Accumulated DepreciationEquipment		6,000
	S. Kirby, Capital		24,000

B)

Equipment		24,000
	S. Kirby, Capital		24,000

C)

Equipment		25,000
Accumulated DepreciationEquipment		6,000
	Gain on Purchase of Equipment		1,000
	S. Kirby, Capital		30,000

D)

Equipment		25,000
	S. Kirby, Capital		25,000