AT TWO - MULTIPLE CHOICE QUESTIONS (8 POINTS) 1. Partner A&B agreed to allocate net income as follows: Partner B Partner A $ 40,000 Average Capital Balances 1ooooo $ 60,000 Salary allowance $20,000 Soooo $30,000 Interest on average capital 10% 10% Ooo 6050 70% 30% Yooo Remainder 70,00 21,000 49,000 Assuming the current year net income of $70,000, what amount should be allocated to each partner? A) Partner A $39,000 and Partner B $31,000 B) Partner A $33,000 and Partner B $37,000 Partner A $53,000 and Partner B $17,000 D) Partner A $41,000 and Partner B $29,000 2. The XYZ partnership provides a 10% bonus to Partner Y that is based upon partnership income, after deduction of the bonus. If the partnerstilbs income is $140,000, how much is Partner Y's bonus allocation? A$12,727 B) $13,860 C) $14,000 D) $15,400 artnership CA of a