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Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capital balance for the current year is $278,000, and Atkins' beginning partnership capital balance for the current year is $242,000. The partnership had net income of $236,000 for the year. Barber withdrew $40,000 during the year and Atkins withdrew $88,000. What is Barber's return on equity?

Multiple Choice

• 37.2%

• 42.4%

• 39.5%

• 18.6%

• 33.1%

Farmer and Taylor formed a partnership with capital contributions of $300,000 and $350,000, respectively. Their partnership agreement calls for Farmer to receive a $110,000 per year salary. The remaining income or loss is to be divided equally. Assuming net loss for the current year is $35,000, the journal entry to allocate the net loss is:

Multiple Choice

• Debit Income Summary, $35,000; DebitTaylor, Capital, $37,500; Credit Taylor, Capital, $72,500.

• Debit Income Summary, $35,000; Credit Farmer, Capital, $17,500; Credit Taylor, Capital, $17,500.

• Debit Income Summary, $35,000; Credit Taylor, Capital, $17,500; Credit Farmer, Capital, $17,500.

• Debit Income Summary, $35,000; Debit Farmer, Capital, $37,500; Credit Taylor, Capital, $72,500.

• Debit Taylor, Capital, $72,500; Credit Income Summary, $35,000; Credit Farmer, Capital, $37,500.

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 $173,000 for its first year, what amount of income is credited to Cox's capital account? (Do not round your intermediate calculations.)

Multiple Choice

• $51,900.

• $57,667.

• $43,250.

• $77,850.

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