Harper Ltd has observed that at an activity level of 8 000 units the maintenance cost is $28 000, and at 12 000 units the maintenance cost is $36 000. Using the high-low method, the cost formula for maintenance is: Select one: a. $12 000 + $2.00 x units. b. $4 000 + $2.00 x units. c. $3.00/unit d. $12 000 + $1.50 x units. Jack and Daniel have capital account balances at the end of the year of $150,000 and $65,000 respectively. Profit of the partnership is $220,000. The profit and loss sharing agreement calls for (1) a salary of $65,000 to Jack and $35,000 to Daniel (2) interest of 7% p.a. on capital balances, (3) the residual profit to be split 70:30 in favour of Jack. Jack's share of the distribution is: Select one: a. $148,965 b. $71,035 c. $150,000 d. $220,000 At 31 December 2014, the end of their accounting year, the Zanzibar trading company understated ending inventory by $4,250. The profit for 2014 will be: Select one: a. Correctly stated b. Overstated c. Understated. d. Dependant on whether or not the inventory increased during 2014