Use the following information for questions 16 and 17

Partners John and Kite share profits and losses in the ratio of 3:1, and have current total capital balance of $127,400. They agree to admit Smith as a partner with a 30% interest in the capital.

16. If smith pays $67,200 and the bonus method used, entries to record the admission of Smith would include a

a. credit of $1,575 to Kite, Capital

b. credit of $2,205 to Kite, Capital

c. credit of $3,150 to Kite, Capital

d. debit of $1,470 to Kite, Capital

17. If smith pays $67,200 and the goodwill method used, entries to record the admission of Smith would include a

a. credit of $5,250 to Kite, Capital

b. credit of $3,150 to Kite, Capital

c. credit of $7,350 to Kite, Capital

d. credit of $2,450 to Kite, Capital