The Final-Day partnership has been liquidated. The profit and loss allocation and the final capital balances are as follows (deficit balances are in parentheses): Abbie (20% of gains and losses) (140,000) Rachel (30%) (160,000) Betsy (10%) 100,000 Ellen (40%) 200,000 To reduce its deficit balance, Rachel contributes to the partnership $100,000. How the money should be allocated among the partners?

$25,000 to each of the four partners

Abbie 0; Rachel 0; Betsy 50,000; Ellen 50,000;

Abbie 0; Rachel 0; Betsy 60,000; Ellen 40,000;

Abbie 0; Rachel 0; Betsy 0; Ellen 100,000;

None of the answers is correct

The Florida-Surfers partnership had the following balance sheet just before its final liquidation:

Cash	$ 80,000		Liabilities	$ 90,000
Inventory	120,000		Phyllis, Capital (50% of profits and losses)	120,000
Other Assets	300,000		Sara, Capital (20%)	60,000
			Robin, Capital (30%)	230,000
Total	$ 500,000		Total	$ 500,000

The Other Assets are sold for $180,000 and liquidation expenses are estimated to be $10,000. What distribution, if any, can be made to the partners?

Phyllis 80,000; Sara 32,000; Robin 48,000;

Phyllis 0; Sara 8,000; Robin 152,000;

Phyllis 120,000; Sara 60,000; Robin 230,000

No distribution can be made until all liabilities are fully paid

None of the answers is correct

The Acadia Corporation owns 70% of Biscayne Corporation. During 2012 Biscayne paid $60,000 dividends and had net income of $180,000. The tax rate is 40%. What deferred tax liability should be recognized on the consolidated balance sheet?

		-0-
		$16,800
		$9,600
		$6,720
		None of the answers is correct