Xun, Yue and Zhuo have interests in XYZ Partnership. Partnership income for the year is $400,000. The partnership agreement specifies that Xun is to receive an annual salary of $200,000, Yue is to receive an annual salary of $50,000, and Zhuo is to receive an annual salary of $120,000. Any remaining income or loss is to be divided between the three partners in a 2:1:1 ratio. Salaries are to be fully implemented.

Partnership income allocated to Zhuo is: Select one:

A. $112,500 B. $127,500 C. $120,000 D. $126,000

If a CPA firm is organized as an LLP and an individual partner is involved in a negligent audit, another partner in the same CPA firm is personally liable: Select one:

A. Always.

B. If the partner operates out of the same office.

C. If the partner was involved in the audit in a supervisory role.

D. Never.

Hopeful Company's balance sheet is as follows:

The company enters into a quasi-reorganization. Pursuant to this plan, inventories are written down by $50,000 and property is reduced by $180,000. The par value of the common stock is reduced to $2/share. After the quasi-reorganization, total assets are reported at:

Select one: A. $1,560,000 B. $1,790,000 C. $1,330,000 D. $1,270,000

Hopeful Company Balance Sheet, pre-quasi-reorganization Assets Liabilities and Equity Sini $1,220,000 550,000 Common stock, $10 par 950,000 Additional paid-in capital (H1cc)