7 1. Which of the following is not a characteristic of a partner- ship? 3. Taxable entity c. Mutual agency. b. Co-ownership of property. d. Limited life. 2. A partnership agreement should include each of the fol- lowing except: a. names and capital contributions of partners. b. rights and duties of partners as well as basis for sharing net income or loss, c. basis for splitting partnership income taxes. d. provision for withdrawal of assets. 3. The advantages of a partnership do not include: a. case of formation. b. unlimited liability. e. freedom from government regulation. d. ease of decision making. 4. Upon formation of a partnership, each partner's initial in- vestment of assets should be recorded at their: a. book values. c. fair values b. cost. d. appraised values. 5. Ben and Sam Jenkins formed a partnership. Ben con- tributed $8,000 cash and a used truck that originally cost $35,000 and had accumulated depreciation of $15,000, The truck's fair value was $16.000. Sam, a builder, contrib- uted a new storage garage. His cost of construction was $40,000. The garage has a fair value of $55.000. What is the combined total capital that would be recorded on the partnership books for the two partners? 1. $79.000 e $75,000 15. $60.000 d. $90,000 a