2. Jordon and Heidi share income equally. For the current year, the partnership net income is $40,000. Jordon made withdrawals of $14,000, and Heidi made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Jordon, capital, $40,000; Heidi, capital, $58,000. Jordon's capital account balance at the end of the year is

a. $54,000

b. $46,000

c. $74,000

d. $68,000

3. Carrie and Callie form a partnership in which Carrie contributes $85,000 in assets and agrees to devote half time to the partnership. Callie contributed $50,000 in assets and agrees to devote full time to the partnership. If no additional information is available, how will Carrie and Callie share in the division of income?

a. 1:1

b. 2:1

c. 1:2

d. 5:8.5

4. Use the information below to answer the questions that follow. Isis and Kelsey are forming a partnership. Isis will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000. What amount will be recorded to the building account?

a.$14,000

b.$44,000

c.$40,000

d.$24,000

5. Use the information below to answer the questions that follow. Isis and Kelsey are forming a partnership. Isis will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000. What amount will be recorded to Isis's capital account?

a.$7,500

b.$18,000

c.$25,500

d.$10,500

6. Use the information below to answer the questions that follow. Isis and Kelsey are forming a partnership. Isis will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000. What amount will be recorded to Kelsey's capital account?

a.$14,000

b.$24,000

c.$40,000

d.$44,000

7. Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

a. $15,000

b. $3,000

c. $30,000

d. $45,000

8.Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company?

a. $60,000

b. $210,000

c. $120,000

d. $180,000