QUESTION 18 If a partner's capital account is credited with the amount that he or she contributed in cash, which of the following financial statements will be affected? A) the withdrawal statement OB) the bank reconciliation statement C) the statement of partners' equity D) the interest payment schedule QUESTION 19 in their business partnership, George has an ownership interest of 5% and Ben has an ownership interest of 45% in the current year, they purchase equipment for $9900. In order to finance the equipment purchase. George makes a cash contribution of 57400 and Ben makes a cash contribution of $2500 to the partnership. Based on the information provided which of the following is TRUE regarding the partnership balance sheet? A) Both George, Capital and Ben, Capital will increase by $9900 B) George, Capital will increase by $7400 and Ben, Capital will increase by $2500. C) George, Capital will increase by $9900 and Ben, Capital will remain unchanged. D) George, Capital will increase by $5445 and Ben, Capital will increase by $4455 QUESTION 20 Steve owns 64% and Mark owns 36% of a partnership business. They purchase equipment with a suggested value of 59600. The current market value of the equipment at the time of purchase was $9100. At the time of the balance sheet preparation, depreciation of 5160 was recorded. Based on the information provided, which of the following is TRUE of the partnership? A) The Equipment account will be debited at 59100 on the date of purchase. B) The Equipment account will be debited at $8940 on the date of purchase. C) The Equipment account will be debited at $9600 on the date of purchase. D) The Equipment account will be debited at $9440 on the date of purchase. QUESTION 21 Which of the following is TRUE of a corporation? A) A corporation cannot be privately held. B) The earnings of a corporation may be subject to double taxation, C) A corporation has a limited life. D) The stockholders of a corporation have unlimited liability for the corporation's debt