1. How are income taxes paid for a partnership? (2 points)

2. Sally and Amy are partners in Help4You Partners. When they withdraw cash for personal use, how should that be recorded in the accounting records? (3 points)

3. The Corner Cafe decides to close due to the increased competition from the new Starbucks down the street. If after liquidating the assets there is not enough cash to cover debts, what happens? (3 points)

4. The partnership of Geoffrey and Berto shares profits and losses in a 50:50 ratio, and the partners have capital balances of $65,000 each. How much will be in Geoffrey's capital account if Tasha joins the partnership with a $80,000 investment in exchange for a one-third share of the partnership? You must show the calculation to receive credit for this question. (4 points)

5. The partnership of Shelly, Patel, and Monique has done well. The three partners have shared profits and losses in a 1:3 ratio, with capital balances of $70,000 each. Monique wants to retire and withdraw. What will be the balance in Shelly's capital account after Monique is paid $84,000 for her share of the partnership? You must show the calculation to receive credit for this question. (4 points)

6. While sole proprietorships and corporations are the most popular forms of business organization, the limited liability company (LLC) is a close third. Limited liability companies are treated like partnerships in the majority of situations. Why do you think LLCs are gaining in popularity? (4 points)