Tanner and Teresa share income and losses in a 2:1 ratio (2/3 to Tanner and 1/3 to Teresa) after allowing for salaries of $46,800 to Tanner and $68,400 to Teresa. Net income of the partnership is $136,200. How should income be divided for Tanner and Teresa?

a.Tanner, $60,800; Teresa, $75,400

b.Tanner, $80,400; Teresa, $55,800

c.Tanner, $55,800; Teresa, $80,400

d.Tanner, $56,800; Teresa, $79,400

Question Content Area

Singer and McMann are partners in a business. Singer's original capital was $40,500 and McMann's was $50,500. They agree to salaries of $13,900 and $19,100 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will Singer's share of the income be if the income for the year is $70,500?

a.$34,990

b.$42,300

c.$13,900

d.$17,950

Question Content Area

Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $33,900 and $78,900, respectively, at the time they decide to terminate the partnership. Noncash assets with a book value of $112,800 are sold for $78,900. What amount of loss on realization should be allocated to Alpha?

a.$11,300

b.$26,300

c.$78,900

d.$33,900