1. Diya and Minh began a partnership by investing $28,000 and $20,000 in cash, respectively.

Assume that during its first year the partnership earned a $28,000 profit. What would be the

share of each partner in the profit if the partners had agreed to share it by giving a $16,400 per

year salary allowance to Diya and an $18,000 per year salary allowance to Minh, 10% interest

on their beginning investments, and the remainder equally?

A. Diyas share, $13,200; Minhs share, $14,800.

B. Diyas share, $14,000; Minhs share, $14,000.

C. Diyas share, $13,349; Minhs share, $14,651.

D. Diyas share, $14,400; Minhs share, $13,600.

E. Diyas share, $13,600; Minhs share, $14,400.

2. Arafin and Parneet began a partnership by investing $28,000 and $20,000 in cash, respectively.

Assume that during its first year the partnership earned a $42,000 profit.

What would be the share of each partner in the $42,000 profit if the partners had agreed to a

$16,400 per year salary allowance to Arafin and an $18,000 per year salary allowance to

Parneet, 10% interest on their beginning investments, and the remainder equally?

A. Arafins share, $21,000; Parneets share, $21,000.

B. Arafins share, $22,200; Parneets share, $19,800.

C. Arafins share, $21,400; Parneets share, $20,600.

D. Arafins share, $24,500; Parneets share, $17,500.

E. Arafins share, $20,600; Parneets share, $21,400.

3. PQR Company, a public company following IFRS, decides to lease an office telephone for six

months. The lease transaction:

A. Must be recorded as a leased asset and lease liability.

B. May be recorded as a short-term lease.

C. Must be recorded as a short-term lease.

D. Must be recorded at the fair market value of the leased asset.

E. None of the above.

4. Harkaran and Sharlene are partners who share profits and losses equally. Harkaran and

Sharlene have capital balances of $50,000 and $40,000, respectively. Assume Tetiana is

admitted to the partnership by investing $60,000 in cash in exchange for a one-third

partnership interest. If the difference between Tetianas investment and her recorded

partnership equity is considered a bonus to the existing partners, which of the following

amounts will be credited to Tetianas capital account:

A. $30,000

B. $60,000

C. $50,000

D. None of the above.