Question :
85. Fontaine and Monroe forming a partnership. Fontaine invests a building : 1257527
85. Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property.Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for the building and for Fontaine’s Capital account are:
A. Building $250,000; Fontaine, Capital $250,000.
B. Building $175,000; Fontaine, Capital $175,000.
C. Building $250,000; Fontaine, Capital $75,000.
D. Building $250,000; Fontaine, Capital $175,000.
E. Building $175,000; Fontaine, Capital $75,000.
86. Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property. Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for Fontaine’s Capital account and for Monroe’s Capital account are:
A. Fontaine, Capital $175; Monroe, Capital $45,000.
B. Fontaine, Capital $0; Monroe, Capital $100,000.
C. Fontaine, Capital $250,000; Monroe, Capital $100,000.
D. Fontaine, Capital $250,000; Monroe, Capital $155,000.
E. Fontaine, Capital $175,000; Monroe, Capital $155,000.
87. Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $250,000; the partnership assumes responsibility for a $75,000 note secured by a mortgage on the property.Monroe invests $100,000 in cash and equipment that has a market value of $55,000. For the partnership, the amounts recorded for total assets and for total capital account are:
A. Total assets $405,000; total capital $330,000.
B. Total assets $350,000; total capital $350,000.
C. Total assets $350,000; total capital $275,000.
D. Total assets $305,000; total capital $230,000.
E. Total assets $405,000; total capital $305,000.
88. Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $150,000 for its first year, what amount of income is credited to Cox’s capital account?
A. $50,000.
B. $64,286.
C. $45,000.
D. $36,000.
E. $60,000.
89. Cox, North, and Lee form a partnership.Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of $150,000 for its first year, what amount of income is credited to Lee’s capital account?
A. $50,000.
B. $67,500.
C. $45,000.
D. $54,000.
E. $60,000.
90. Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for a 5% interest allowance on the partner’s capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $150,000 for its first year, what amount of income is credited to North’s capital account?
A. $50,000.
B. $63,500.
C. $61,500.
D. $47,500.
E. $45,000.
91. Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Their partnership agreement calls for a 5% interest allowance on the partner’s capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $174,000 for its first year, what amount of income is credited to Lee’s capital account?
A. $58,000.
B. $57,000.
C. $61,500.
D. $55,500.
E. $48,000.
92. Mace and Bowen are partners and share equally in income or loss. Mace’s current capital balance is $135,000 and Bowen’s is $120,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership. The amount credited to Kent’s capital account is:
A. $111,000.
B. $115,000.
C. $92,500.
D. $120,000.
E. $119,000.
93. Mace and Bowen are partners and share equally in income or loss.Mace’s current capital balance is $135,000 and Bowen’s is $120,000.Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership. The balances inMace’s and Bowen’s capital accounts after admission of the new partner equal:
A. Mace $135,000; Bowen $120,000.
B. Mace $137,000; Bowen $122,000
C. Mace $133,000; Bowen $118,000.
D. Mace $139,000; Bowen $120,000.
E. Mace $135,000; Bowen $124,000.
94. Peters and Chong are partners and share equally in income or loss. Peters’ current capital balance is $140,000 and Chong’s is $130,000. Peters and Chongagree to accept Aaron with a 30% interest in the partnership. Aaroninvests $98,000 in the partnership. The balances in Peters’s and Chong’s capital accounts after admission of the new partner equal:
A. Peters $140,000; Chong$130,000.
B. Peters$146,200; Chong$136,200.
C. Peters$145,000; Chong$135,000.
D. Peters$133,800; Chong$123,800.
E. Peters$166,027; Chong$156,027.
