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

Recognize the effect of external factors on the supply and demand of products.

Identify how changes in the cost of production materials influence market supply.

Understand the distinction between "supply" and "quantity supplied" and their respective reactions to market changes.

Distinguish between the effects of technological advances and resource costs on supply.

---

Definitions:

Glorious Revolution

The bloodless coup in England in 1688 that resulted in the overthrow of King James II and the ascension of William III and Mary II to the throne, significantly expanding the powers of Parliament.

England's Political System

A constitutional monarchy and parliamentary democracy, where the monarch is the head of state and the Prime Minister is the head of government.

Dutch School

Refers to a group or style of artists and their works originating in the Netherlands during the 16th and 17th centuries, known for detailed realism.

Painting

The practice of applying pigment, color, or other medium to a surface with various tools, such as brushes, knives, or sponges, to create artistic expressions.