3. In A Partnership, Mutual Agency Means A Each Partner Acts On His Own Behalf When Engaging In Partnership Business B The Act Of Any Partner Is Binding On All Other Partners, Only If Partners Act Scope Of Authority C. An Act By A Partner Is Judged As Binding On Other Partners Depending On Wther Act Appears To Be Appropriate For The Partnership. D. That

 

5. In a partnership, mutual agency means a each partner acts on his own behalf when engaging in partnership business b. the act of any partner is binding on all other partners, only if partners act within their scope of authority. c. an act by a partner is judged as binding on other partners depending on whether the act appears to be appropriate for the partnership. d. that partners must pay taxes on a mutual or combined basis. The Mayer and Rodin partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $400,000 for Mayer and $200,000 for Rodin. At the beginning of the year, Mayer's Capital account had a balance of $800,000, while Rodin's Capital account had a balance of $700,000. Net income for the year was $500,000. The balance of Rodin's Capital account at the end of the year after closing is a. $950,000. b. $200,000. c. $850,000. d. $900,000. In the liquidation of a partnership, any gain or loss on the realization of noncash assets should be allocated a. first to creditors and the remainder to partners. b. to the partners on the basis of their capital balances. c. to the partners on the basis of their income ratios. d. only after all creditors have been paid. 6. The liquidation of a partnership is a process containing the following steps: 1. Pay partnership liabilities in cash. 2. Allocate the gain or loss on realization to the partners on their income ratios. 3. Sell noncash assets for cash and recognize a gain or loss on realization. 4. Distribute remaining cash to partners on the basis of their remaining capital balances. Identify the proper sequencing of the steps in the liquidation process. a. 3, 2, 4, 1. b. 3, 2, 1, 4. c. 1, 3, 2, 4. d. 1, 4, 3, 2.