1.A partnership agreement specifies salaries to partners, interest on partners' capital, and the remaining profits or losses to be shared in a fixed ratio. In one year partnership profit is not sufficient to cover both salaries and interest,

Select one:

Select one:a.

only interest is allocated to the partners.

b.

only salaries are allocated to the partners.

c.

both salaries and interest are allocated to the partners.

d.

the entire profit is shared in a fixed ratio.

2.Johnson Limited Issued $100,000 of 8%, 10 year debenture at a price of 96 on June 1, 2020. Johnson pays interest each 1 October and 1 January.

The total interest expense over the life of the debenture is: