27. Lori and Peter enter into a partnership and decide to share profits and losses as follows: 1. The first allocation is a salary allowance with Lori receiving $16,000 and Peter receiving $18,000. 2. The second allocation is 15% of the partners' capital balances at year end. On December 31, 2019, the capital balances for Lori and Peter are $90,000 and $20,000, respectively. 3. Any remaining profit or loss is allocated equally. For the year ending December 31, 2019, the partnership reported net income of $55,000. What is Lori's share of the net income? A) $29,500 B) $20,250 $31,750 D) $23,250 28. Raul and Bianca are partners. Raul has a capital balance of $50,000 and Bianca has a capital balance of $37,000. Bianca sells half of her ownership interest to Bill for $20,500. Which of the following is TRUE of the journal entry to record this transaction? A) Bianca, Capital is credited for $18,500 and Raul, Capital is debited for $18,500 B) Bill, Capital is credited for $20,500 and Raul, Capital is debited for $20,500. C) Bill, Capital is credited for $18,500 and Bianca, Capital is debited for $18,500. D) Bianca, Capital is credited for $20,500 and Raul, Capital is debited for $20,500. 29. Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: Floyd $51,000 Merriam 19,000 Floyd and Merriam share profits and losses equally. They agreed to dissolve the partnership and start a new one, admitting Bamelaw,for one-half share in the capital in exchange for land with a market value of $66,000. Which of the following is the correct journal entry to record the introduction of Bamelos, as a partner? A) Land 66,000 Ramelow. Capital 66,000 B) Floyd, Capital 66,000 Ramelow. Capital 66,000 33,000 33,000 66,000 Merriam, Capital Floyd, Capital Ramelow. Capital D) Land Merriam, Capital Floyd, Capital Ramelow. Capital 66,000 1,000 1,000 68.000