1.Ames and Barton are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80,000. What amount of loss on realization should be allocated to Barton?

a.$80,000

b.$30,000

c.$10,000

d.$20,000

2.

When a partnership goes out of business, it is liquidated. The last step in this process is

a.division of gain or loss.

b.realization.

c.payment of liabilities.

d.distribution to partners.

3.

A limited liability corporation's (LLC) equity is reported similar to that of a

a.trust.

b.sole proprietor.

c.regular corporation.

d.partnership.

4.Which of the following equations best represents the reporting shown in a statement of partnership equity?

a.Beginning Balance of Partner Capital + Capital Additions + Net Income Partner Withdrawals = Ending Balance of Partner Capital

b.Partner Withdrawals Net Income Partner Deficiency = Ending Balance of Partner Capital

c.Beginning Balance of Partner Capital Capital Additions Net Income Partner Withdrawals = Ending Balance of Partner Capital

d.Ending Balance of Partner Capital + Capital Additions Partner Withdrawals = Partnership Net Income