A company used straight-line depreciation for an item of equipment that cost RM12,000, had a residual value of RM2,000, and had a five-year useful life. After depreciating the asset for three complete years, the residual value was reduced to RM1,200 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:

 

	RM1,000.
	RM1,800.
	RM1,600.
	RM1,467.

 

Mutual agency implies that each partner in a partnership is a fully authorized agent of the partnership. Which of the following statements is correct regarding the authority of a partner to bind the partnership in dealings with third parties?

Gourmet Cookware makes all sales on credit with 60% of the payment being received in the month of sale, 30% in the month following sale and the remaining 10% in the subsequent month. Budgeted sales are as follows: January RM100,000, February RM140,000, March RM120,000. The budgeted balance of debtors at 31 March is:

 

	RM120,000.
	RM48,000.
	RM74,000.
	RM62,000.

	A partner may be able to legally bind the partnership to actions even if the other partners are unaware of his actions.
	Only a partner with a majority interest in a partnership has the authority to represent the partnership to third parties.
	The partner's authority may be effectively limited by a formal resolution of the other partners, even if third parties are not aware of that limitation.
	The partner's authority must be derived from the partnership agreement.