Question Content Area

Carla and Eliza share income equally. For the current year, the partnership net income is $47,900. Carla made withdrawals of $13,900, and Eliza made withdrawals of $17,800. At the beginning of the year, the capital account balances were: Carla, Capital, $42,400; Eliza, Capital, $51,500. Eliza's capital account balance at the end of the year is

a.$93,250

b.$57,650

c.$75,450

d.$51,500

Xavier and Yolanda have original investments of $48,900 and $101,700, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $25,100 and $29,700, respectively; and the remainder to be divided equally. How much of the net income of $110,500 is allocated to Xavier?

a.$34,880

b.$57,204

c.$47,670

d.$25,100

Question Content Area

Singer and McMann are partners in a business. Singers original capital was $40,000 and McManns was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses on a 3:2 ratio (3/5 to Singer and 2/5 to McMann), what will McMann's share of the income be if the income for the year is $30,000?

a.$18,600

b.$20,000

c.$17,400

d.$18,000

Question Content Area

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

a.$60,000

b.$120,000

c.$20,000

d.$100,000