On November 10, 2020, Maher, Saher, and Taher, partners of Maher, Saher, & Taher LLP, shared net income and losses in a 4 : 2 : 1 ratio respectively. In liquidation of the LLP, the Capital per unit of income sharing ratio were: $10,000, $12,000, $15,000 respectively. The total capital balance of LLP after liquidation would be:

a.

$10,000.

b.

$12,000.

c.

$15,000.

d.

$0.

On January 31, 2020, Combinor Company issued $900,000 face amount of 9%, 10-year bonds due January 31, 2030, with a present value of $965,423 at a 8% yield, to Combinee Company for its net assets. The journal entry for the merger includes:

a.

Debit to investment in combinee net assets $900,000.

b.

Credit to discount on bonds payable $65,423.

c.

Credit to premium on bonds payable $65,423.

d.

Debit to investment in combinee net assets $ 834,577