X and Y have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and si 8.00 respectively, and the remainder divided equally. How much of the net income of $50,000 would be allocated to X? a) $23,000.00 b) $27,000.00 c) $25,000.00 d) $33,333.33 25) Bonds were issued on January 1 of the current year at a premium of $3,040. If the life of the bonds is 9.5 years, what is the amount of the current year's amortization and how would the Premium on Bonds Payable account be affected by the entry to record the amortization: a) $320; Premium on Bonds Payable account debited b) $3,040; Premium on Bonds Payable account credited c) $320; Premium on Bonds Payable account credited d) $3,040; Premium on Bonds Payable account debited 2 6) Bonds Payable has a balance of $800,000 and Discount on Bonds Payable has a debit balance of S9 .500. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption? a) $6,500 gain b) $6,500 loss c) $25,500 gain d) $25,500 loss 27) Bonds with a face value of $100,000 were purchased through a broker at 100 plus accrued interest of $1,200 and brokerage commission of $120. The amount to be debited to the investment account is: a) $100,000 b) $100,120 c) $101,320 d) $99,800 28) Brooks Corporation owns 40% of the common stock of the Fairmont Corp. as a long-term investment Company and exercises a significant influence over its operating and financing policies. The stock was purchased on January 1, of the current year, for a total cost of $150,000. At end of the current calendar, Fairmont reports net income of $60,000 and pays $50,000 in dividends to its common stockholders. As a result of these transactions, what's the ending balance in the "Investment December 31, of the current year on Brook's books? a) $150,000 b) $174,000 c) $154,000 d) $194,000 t in Fairmont Corp. Common Stock account at 200 shares of Logan Corp. common stock as an investment for $3,500 plus commission of $250 and transfer taxes of $75. What amount would Longspur debit to its investment account as the cost of Logan Corp. stock? a) $3,750 b) $3,575 c) $3,500 d) $3,825