Carpenter, Kneller, and Hartley are partners.

Their Capital account balances were $35,000, $30,000, and$24,000, respectively, at the beginning of the current fiscalyear.

The partnership agreement provides for an allowance of interestat the rate of 6% on the capital balances at the beginning of theyear, and salary allowances of $8,000, $11,000, and $12,000,respectively.

The remaining partnership net income is to be divided 371/2% /371/2% / 25%.

1. If the net income for that year was $63,460, the amount to bedistributed to the partners for the year, after providing forsalaries and interest on capital balances, is: Can you please showme how to calculate this?

A. $6,780.

C. $27,120.

B. $10,170.

D. $36,340.

2. If you assume a net income of $30,700, by what amount wouldHartley’s capital account be increased as a result of the netincome distribution? Can you please me how to calculate this?

A. $14,850

C. $12,030

B. $13,440

D. $10,590

3. How would you record the general journal entry to distributethe net income of a partnership?

A. As a debit to the Cash account and credits to the partners’Capital accounts

B. As debits to the partners’ Capital accounts and a credit toCash

C. As a debit to the Income Summary account and credits to thepartners’ Capital accounts D. As debits to the partners’ Capitalaccounts and a credit to the Income Summary account