Use the Following Information to Answer the Question(s) Below

question 42

Multiple Choice

Use the following information to answer the question(s) below.

Alfred and Barne share profits and losses in a ratio of 2:3, respectively, after salary allowances, interest allowances and bonus allocations. Alfred and Barne receive salary allowances of $30,000 and $60,000, respectively, and both partners receive 10% interest based upon the balance in their capital accounts on January 1. Partners' drawings are not used in determining the average capital balances. Total net income for 2014 is $180,000. If net income after deducting the interest and salary allocations is more than $60,000, Barne receives a bonus of 5% of the original amount of net income.

-If the partnership experiences a net loss of $60,000 for the year,what will be the final net amount of profit or (loss) closed to each partner's capital account?

• A)($90,000)to Alfred and $30,000 to Barne
• B)($30,000)to Alfred and ($30,000)to Barne
• C)($24,000)to Alfred and ($36,000)to Barne
• D)$30,000 to Alfred and ($90,000)to Barne

---

Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain down the back, transmitting nerve signals between the brain and the rest of the body.

Human Childbirth

The process of delivering a baby from the uterus to the outside world, typically through stages of labor and delivery.

Birth Canal

The passageway comprising the cervix, vagina, and vulva through which a fetus travels during birth.

Cultural Practices

The shared activities, rituals, and norms that define the lifestyle of a particular group or society.