Amy and Bamy, partners of Amy & Bamy LLP, who share net income and losses in a 60:40 ratio respectively, decided to liquidate the partnership. A portion of the noncash assets had been realized, but assets with a carrying amount of $42,000 were yet to be realized. All liabilities had been paid, and cash of $20,000 was available for distribution to partners. The partners capital account credit balances were $40,000 for Amy and $22,000 for Bamy. the journal entry for cash distribution (totaling 20,000) is:

Select one:

a.

Debit $5,200 to Amy capital, debit $14,800 to Bamy capital and credit to cash $20,000.

b.

Debit $12,000 to Amy capital, debit $8,000 to Bamy capital and credit to cash $20,000.

c.

Debit $8,000 to Amy capital, debit $12,000 to Bamy capital and credit to cash $20,000.

d.

Debit $14,800 to Amy capital, debit $5,200 to Bamy capital and credit to cash $20,000.

Pino Corporation owned a 90% interest in a subsidiary, Sino Company, which was accounted for by the equity method, During 2020, Pino had income, exclusive of intercompany investment income, of $290,000, Pino share in Sino net income $243,000. Sino declared and paid a $80,000 dividend during Year 2020. There were no differences between the current fair values and carrying amounts of Sinos identifiable net assets on the date of the business combination, and there was no goodwill in the business combination. Sino net income for 2020 is:

a.

$ 270,000.

b.

$ 243,000.

c.

$ 560,000.

d.

$ 533,000.