19.

Brown invested $200,000 and Freeman invested $150,000 in a partnership. They agreed to an interest allowance on the partners beginning-year capital investments of 10%, with the remaining balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns $205,000 in income are:

Multiple Choice

• $117,143 to Brown; $87,857 to Freeman.

• $122,500 to Brown; $82,500 to Freeman.

• $105,000 to Brown; $100,000 to Freeman.

• $112,750 to Brown; $92,250 to Freeman.

• $102,500 to Brown; $102,500 to Freeman.

18.

Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. 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 $173,000 for its first year, what amount of income is credited to Cox's capital account? (Do not round your intermediate calculations.)

Multiple Choice

• $51,900.

• $77,850.

• $59,400.

• $43,250.

• $57,667.

17.

Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capital balance for the current year is $368,000, and Atkins's beginning partnership capital balance for the current year is $371,000. The partnership had net income of $381,000 for the year. Barber withdrew $62,000 during the year and Atkins withdrew $107,000. What is Barber's ending equity?

Multiple Choice

• $499,500

• $687,000

• $749,000

• $496,500

• $558,500