QUESTION 6 Which of the following statements is true in regards to partnerships? Partners are easily able to limit their liability Partners cannot normally be involved in the management of the partnership Net assets contributed by partners are recorded at their current market value Partnerships are subject to the same tax rate as companies or trusts QUESTION 7 A partnership capital account is opened for each partner to: Keep track of the partners share of profits Keep track of the partners original and subsequent contributions Keep track of the partners drawing from the partnership All of the options avialable QUESTION 8 Trumming and Nancy are successful partners. They share profits and losses equally. Their current capital account balances are $20 and $10 respectively. They decide to admit Tyler to the partnership. Tyler pays $70 for 25% of the partnership. Which is the correct bonus? No bonus to any partners as Tyler is investing new resources to the extant partnership $27.50 bonus to both existing partners $35 to Trumming and $25 to Nancy $22.50 bonus to both existing partners