Question : 45.              Moe, Larry and Curly partners in the 3S Company. : 1370044

45.              Moe, Larry and Curly are partners in the 3S Company. Their profit and loss sharing relationship is 6:4:2. Larry’s share of $48,000 in partnership income would be:

A)$16,000

B)$19,200

C)$24,000

D)$32,600

46.              John, Doe and Smitty are partners in the NoName Company. Their profit and loss sharing relationship is 7:5:3. Doe’s share of a $75,000 partnership loss would be:

A)$(37,500)

B)$(25,000)

C)$(20,000)

D)$(15,000)

47.              Nap, Olie, and Eon, who are partners in the Josephine Company, had beginning capital balances of $35,000, $62,000, and $28,000, respectively. If the partners share income and losses based on the ratio of their beginning capital balances, Olie’s share of a $250,000 partnership loss would be:

A)$(155,000)

B)$(124,000)

C)$ (62,000)

D)$ (31,000)

48.              Russ, Adam, and Brent, who are partners in the Bowinkles Company, had ending capital balances for the current year equal to $95,000, $43,000, and $62,000, respectively. If the partners share income and losses based on the ratio of these ending capital balances, Brent’s share of $95,000 in partnership income would be:

A)$58,900

B)$29,450

C)$23,900

D)$0

49.              Tom, Dick and Harry are partners in the Wipeout Company. Their partnership income sharing agreement calls for Tom and Dick to receive salary allowances of $24,000 and $18,500, respectively. Any remaining income or loss is to be divided equally. If the company’s income was $96,500, Dick’s share would be:

A)$18,000

B)$18,500

C)$36,500

D)$37,000

50.              Sage, Rosemary and Thyme are partners in the Music Company. Their partnership income sharing agreement provides that Sage and Thyme are to receive salary allowances of $29,700 and $16,800, respectively, and that any remaining income or loss is to be divided equally among all partners. If the company’s income was $39,000, Thyme’s share would be:

A)$14,300

B)$16,800

C)$19,300

D)$29,800

51.              When a partner receives a salary allowance as part of his/her partnership agreement this mean.

A)The partner donates part of his salary to the partnership in exchange for an ownership interest.

B)The partner will be allocates a portion of the income or loss based on this salary figure.

C)The partner will receive a check for this salary if the company has a profit.

D)The partner will be paid that salary for the year regardless of whether the partnership generates income or loss.

52.              Michael, Zoe and Perry are partners in the Andover Company. Their partnership income sharing agreement provides that Michael and Zoe are to receive salary allowances of $15,000 and $18,000, respectively, and that any remaining income or loss is to be divided equally among all partners. If the company had a loss of $30,000, Zoe’s capital account would:

A)increase by $18,000

B)increase by $8,000

C)decrease by $10,000

D)decrease by $3,000

53.              During the current year, Jacob, Alicia, and Shawn, who are partners in the JAS Company, had average capital balances of $57,000, $49,000, and $64,000, respectively. The partners share profits and losses by allowing a 12% return on average capital, with any remaining income or loss divided in a ratio of 5:3:2. If the company’s income for the current year was $73,800, Shawn’s capital account would increase by:

A)$14,760

B)$18,360

C)$22,440

D)$27,784

54.              During the current year, Chris, Casey, and Steve, who are partners in the CCS Company, had average capital balances of $39,000, $43,000, and $55,000, respectively. The partners share profits and losses by allowing a 12% return on average capital, with any remaining income or loss divided in a ratio of 7:5:3. If the company’s income was $8,940, Casey’s capital account would:

A)increase by $2,980

B)decrease by $2,806

C)increase by $2,660

D)decrease by $2,500