A partner invests into a partnership a building with an original cost of $360,000 and accumulated depreciation of $160,000. This building has a $280,000 fair value. As a result of the investment, the partners capital account will be credited for

a.

$480,000

b.

$200,000

c.

$280,000

d.

$360,000

2.

Koop Company has total proceeds (before segregation of sales taxes) from sales of $9,540. If the sales tax is 6%, the amount to be credited to the account Sales Revenue is:

a.

$9,000

b.

$8,968

c.

$9,540

d.

$10,112

3.

If $120,000 is collected in advance on October 1 for 6-month magazine subscriptions, the amount of subscription revenue earned by December 31 is:

a.

$80,000

b.

$120,000

c.

$60,000

d.

$20,000

On October 1, 2017, Dakota Company issued an $800,000, 10%, nine-month interest-bearing note. If the Dakota Company is preparing financial statements at December 31, 2017, the adjusting entry for accrued interest will include a:

a.

Credit to Notes Payable of $20,000

b.

Debit to Interest Expense of $20,000

c.

Debit to Interest Expense of $30,000

d.

Credit to Interest Payable of $40,000

Amir, Tamer and Sameer are partners in a partnership firm sharing profits and losses on the basis of 40:35:25 respectively and their capital balances are $100,000, $80,000& $40,000 respectively. Maher was admitted to the partnership firm by making an investment of $100,000 with 30% ownership interest, the total capital (for all partners) after admitting Maher is:

a.

$ 96,000

b.

$ 320,000

c.

$140,000

d.

$ 220,000