cash 400,000 liabilities 80,000

other assets 800,000 f capital 280,000

--------------- a capital 460,000

s capital 380,000

Total assets 1,200,000 Total liabilities and capital 1,200,000

x and y share profits and losses in the ratio 30:20:50 Each of the following questions is independent of the others.

1. refer to the above infomation. assume that partner s retires form the partnership and receives 420,000 for her capital interest what is A's capital after s retires if the retiring partners goodwill is recognized by the partnership?

a. 456,000

b.480,000

c.404,000

d.460,000

2. refer to the above information. assume parter s retires from the partnership by selling her interest directly to A for 420,000 what are the captal balances of F and A after the withdrawal by S?

F A

a. 296,000 840,000

b. 280,000 880,000

c. 296,000 880,000

d. 280,000 840,000

3. on 7/1/14 petry co leased equipment to Dish Co for 10 years ( the useful life of the asset) Ptery had purchased the equipmentr for 5,200,000. Annual payments for 828,000 begin on 7/1/14. assume that the present value of these payments at 8% is 6,000,000. if this is the sales type lease, what amount of profit should Petry record for year ended 12/31/14?

a. 0

b. 800,000

c. 1,200,000

d. 1,080,000

4. from the point of view of the lessor, leases cannot be qualified as:

a. Sales-type without profit

b. Sales- type with profit

c. Finance

d. Operating