20) Employer FICA tax is paid by the employer and is added to the employee's earnings.

A. True; ____or B.False ____

21) FICA tax is paid by the employee only. A. True; ____or B.False ____

22) The journal entry to record the employer's payroll tax expense will include a debit to Employee Income Taxes Payable. A. True; ____or B.False ____

23) The addition of a new partner to a firm does not dissolve the old partnership. A. True; ____or B.False ____

24) In their business partnership, George has an ownership interest of 55% and Ben has an ownership interest of 45%. In the current year, they purchase equipment for $9900. In order to finance the equipment purchase, George makes a cash contribution of $7400 and Ben makes a cash contribution of $2500 to the partnership. Based on the information provided, which of the following is TRUE regarding the partnership balance sheet?

A) Both George, Capital and Ben, Capital will increase by $9900.

B) George, Capital will increase by $7400 and Ben, Capital will increase by $2500.

C) George, Capital will increase by $9900 and Ben, Capital will remain unchanged.

D) George, Capital will increase by $5445 and Ben, Capital will increase by $4455.

E) None of the above