When a partnership terminates business, the sale of noncash assets is called

a.

Liquidation

b.

Disposition

c.

Recognition

d.

Realization

Jordon is admitted to a partnership with a 25% capital interest by a cash investment of $150,000. If total capital of the partnership is $650,000 before admitting Jordon, the bonus to Jordon is

a.

$50,000

b.

$25,000

c.

$75,000

d.

$100,000

Jackson is admitted to a partnership with a 25% capital interest by a cash investment of $360,000. If total capital of the partnership is $1,560,000 before admitting Jackson, the bonus to Jackson is

a.

$180,000

b.

$240,000

c.

$120,000

d.

$60,000

Mackenzie Insurance Company collected a premium of $15,000 for a 1-year insurance policy on May 1. What amount should Mackenzie report as a current liability for Unearned Insurance Revenue at December 31?

a.

$15,000

b.

$0

c.

$10,000

d.

$5,000