Reference no: EM132991471

Questions -

Q1. Amy and Bamy, partners of Amy & Bamy LLP, who share net income and losses in a 60:40 ratio respectively, decided to liquidate the partnership. A portion of the noncash assets had been realized, but assets with a carrying amount of $42,000 were yet to be realized. All liabilities had been paid, and cash of $20,000 was available for distribution to partners. The partners' capital account credit balances were $40,000 for Amy and $22,000 for Bamy. the journal entry for cash distribution (totaling 20,000) includes:

a. Debit $14,800 to Amy capital and debit $5,200 to Bamy capital.

b. Debit $8,000 to Amy capital and debit $12,000 to Bamy capital.

c. Debit $12,000 to Amy capital and debit $8,000 to Bamy capital.

d. Debit $5,200 to Amy capital and debit $14,800 to Bamy capital.

Q2. On February 28, 2020, Alpha Corporation acquired 90% of the outstanding common stock of Bita Company for $500,000 cash. Out-of-pocket costs of the business combination paid byAlpha on February 28, 2020, were in the form of Finder's and legal fees relating to business combination $50,000 and Costs associated with SEC registration statement $10,000, only the fair value of plant assets exceeds its carrying amount by $90,000, net assets of Bita $400,000. The amount of goodwill is:

a. $70,000.

b. $109,000.

c. $20,000

d. 68,000