carrying value and $40,000 fair market value. The related mortgage payable of $12,500 is assumed by the partnership. The entry to record the investment in partnership is: 12 A partner invests into a partnership a building with a $25,000 $ 25,000 s 12,500 12,500 A) Building Mortgage Payable Capital $ 40,000 s 12, 500 $ 27,500 B) Building Mortgage Payable Capital c) Capital $ 40,000 Mortgage Payable Building s 12,500 27,500 D) Capital $ 25,000 Mortgage Payable Building $ 12,500 12,500 E) None of the above 13 Partners R and s receive a salary allowance of $3,000 and $7,000, respectively, and share the remainder equally. If the company earned $4, 000 during the period, the entry to close the income or loss into their capital accounts is: A) Income Summary s 10, 000 R, Capital s. Capital $ 3,000 $7,000 B) Income Summary 4,000 s, Capital $ 4,000 C) Income Summary $ 14, 000 R, Capital s, Capital D) Income Summary S 6,000 R, Capital s, Capital E) None of the above 14 Kelly invests $40,000 in a partners The partnership has total capital o Kelly. Which of the following is truei rship for a 10 percent interest. after admitting A) Kelly's capital is $26,000 B) The original partners' capital in the business was $270, 000 before admitting Kelly C) Kelly received a bonus of $10,000 D) The original partners received a bonus o E) None of the above f $10,000 15 Partners Y and z racesve a salary of 515and s30oo , 000, 2:1 ratio respectively, and share income and losses in a respectively. If the partnership sutters a $15,000 hec 2010, the entry to close the income accounts is: or loss into their capital a) Y, Capital $ 15,000 $ 30,000 Z, Capital Income Summary 45,000 B) Y, Capital 25,000 2, Capital Income Summary $ 10,000 15,0o0 c) Y, capital 2, Capital $10,000 5, 000 Income Sunmary $ 15,000 D) Y, Capital s 20,000 2, Capital Income Summary s 10,000 s 10,000 E) None of the above