QUESTION 7

On the statement of financial position, the cumulative amount of depreciation expense recognised to date on a Non-Current Asset is called?

1. Accumulated amortisation

2. Depreciation Expense

3. Accumulated Depreciation

4. Amortisation expense

Question 8)

Wong and White are partners. They have agreed to share profits based on a formula where the first $100 000 is based on service and Wong is to receive $70 000 and White $30 000. The next $100 000 is based on capital contributed where Wong invested $350 000 and White $150 000. Any remaining profits are shared equally.

If profits before distributions were $450 000 how much will White receive?

1. $200 000

2. $185 000

3. $160 000

4. $120 000