1.Franchises cannot be amortized (T/F)

2.A patent expires after 20 years. (T/F)

3.Partners Ron and Sandra have $6,000 capital balances and share income and losses in a 2:1 ratio, respectively. Cash equals $2,000, noncash assets are $20,000, and liabilities are $10,000. If all the noncash assets are sold for $11,000, and each partner agrees to make up any capital deficits with personal cash contributions, Sandra eventually will receive cash of:

a) $0.

b) $1,000.

c) $1,500.

d) $2,000.