Frodo, Sam, and Merry form a partnership where each partner will have an equal share to start. Frodo contributes $100,000 in equipment, Sam contributes $20,000 cash, and Merry contributes $15,000 in cash and $15,000 in equipment. Immediately after formation, Sams capital account would reflect a balance of:

Question 18 options:

A)	$20,000 debit

B)	$50,000 credit

C)	$100,000 credit

D)	$50,000 debit

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Question 19(4 points)

Frodo, Sam, and Merry form a partnership where each partner will have an equal share to start. Frodo contributes $30,000 in cash, Sam contributes $30,000 in equipment, and Merry contributes $10,000 in cash and bring to the table expertise that the partners agree is worth $20,000, and choose to account for the value of this expertise using the goodwill method. Immediately after formation, Merrys capital account would reflect a balance of:

Question 19 options:

A)	$30,000 debit

B)	$10,000 credit

C)	$30,000 credit

D)	$10,000 debit

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Question 20(4 points)

Frodo, Sam, and Merrys partnership calls for the following allocation of income: Frodo and Merry are to receive lump sum salary payments of $10,000 each, Sam and Merry are to receive interest of 10% of their ending capital balances, if theres a profit Frodo is to receive a bonus equal to 20% of the profit, and any remaining income is to be split between Frodo, Sam, and Merry 50%, 20%, and 30% respectively. Frodo, Sam, and Merrys ending capital balances were $50,000, $300,000, and $100,000 respectively. If there was a partnership net profit of $200,000, how much was allocated to Merry in total?

Question 20 options:

A)

$50,000

B)

$20,000

C)

$100,000

D)

$40,000