4) P, L, and are partners with capital balances of $50,000, 530,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest. C contributes $38,000 to the partnership and the bonus method is used. What amount will be credited for C's beginning capital balance? A) $20,000 B) $25,000 C) $27,600 D) $32,600 E) $38,000 5) The advantages of the partnership form of business organization, compared to corporations, include which of the following? A) Single taxation B) Ease of raising capital. C) Mutual agency D) Limited liability E) Difficulty of formation 6) Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partnership? 1) Allocation of salaries, 2) The number of years with the partnership 3) The amount of time each partner works. 4) The average capital invested. A) 1 and 2. B) 1 and 3. C) 1, 2, and 4. D) 1,3, and 4. E) 1, 2, 3, and 4