1.The income earned by a partnership should always be split according to theterms of the partnership agreement. (T/F)

2.Bill pays Chuck $9,000 for his $7,500 interest in a partnership. On the partnership books,

a) Bill will have capital of $9,000.

b) Bill will have capital of $7,500.

c) Bill will receive a bonus.

d) None of these answers are correct.

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.