As part of the initial investment, Ray Blake contributes equipment that had originally cost $94,800 and on which accumulated depreciation of $71,100 has been recorded. If similar equipment would cost $145,300 to replace and the partners agree on a valuation of $58,200 for the contributed equipment, what amount should be debited to the equipment account?

a. $94,800

b. $145,300

c. $43,650

d. $58,200

Xavier and Yolanda have original investments of $48,000 and $105,200, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,700 and $30,200, respectively; and the remainder to be divided equally. How much of the net income of $114,000 is allocated to Yolanda?

a.$51,240

b.$77,364

c.$21,040

d.$64,470

Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries of $16,200 and $43,200, respectively. If the partnership suffers a $15,900 loss, by how much would Jason's capital account increase?

a.$43,200

b.$18,100

c.$37,900

d.$32,500