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32,000, respectively. Wissinge negotiates to sell his partnership interest directly to Mergenthaler for $504,000. Rogers agrees to accept Merg as a new partner. The partnership entry to record this transaction is A Cash 504,000 Mergenthaler, Capital 504,000 B Cash 72,000 Wissinger, Capital 432,000 Mergenthaler, Capital C Wissinger, Capital 504,000 Mergenthaler, Capital 504,000 D Wissinger, Capital 432,000 Mergenthaler, Capital 432,000 E none of the above. 5) Motts is admitted to a partnership with a 2S% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Motts, the bonus to Mott is A $45,000. 8 $60,000. $30,000. D $15,000. none of the above. E 6) Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for bwlding a foundation and instaling the equipment. It is estimated that the equipment will have a $60,000 salvage value at the end of its S-year usefulife. Depreciation expense each year using the straight-line method will be 300,000 A $58,800. Co,ooo 1,000 $49,200. $48,000. D $%70,800. E none of the above. 7) A $600,000 bond was retired at 98 when the book value /carrying value of the bond was $590,000. The entry to record the retirement would include a gain on bond redemption of $2,000. A D loss on bond redemption of $2,000. gain on bond redemption of $10,000. loss on bond redemption of $10,000. one of the above

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