Farmer and Taylo

Farmer and Taylor formed a partnership with capital contributions of $200,000 and $250,000, respectively. Their partnership agreement calls for Farmer to receive a $70,000 per year salary The remaining income or loss is to be divided equally. If the not income for the current year is $135,000. then Farmer and Taylor's respective shares are: $67,500: $67,500. $130,000; $5,000. $106,140; S28.860 D $90,000; $45,000. $102,500. S32.500. Which of the following statements is true? Partners are employees of the partnership. Salaries to partners are expenses on the partnership income statement Salary allowances usually reflect the relative value of services provided by partners. Salary allowances are expenses. Interest allowances are expenses zeheng invested $100,000 and Murray invested $200,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Zheng and a $40,000 per year salary allowance to Murray, plus an interest allowance on the partners' beginning-year capital investments at 10%. with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns $105,000 in income are. A $52,500 to Zheng: $52,500 to Murray. B $35,000 to Zheng; $70,000 to Murray. $57,500 to Zheng; $47,500 to Murray. S42.500 to Zheng; $62,500 to Murray. E $70,000 to Zheng; $60,000 to Murray