The partnership of abel and caine was formed on february 28, 2017. at that date the following assets were invested:
abel caine
cash $120,000 $200,000
merchandise -0- 320,000
building -0- 840,000
furniture and equipment 200,000 -0-

the building is subject to a mortgage loan of $280,000, which is to be assumed by the partnership. the partnership agreement provides that abel and caine share profits or losses 30% and 70%, respectively.
caine’s capital account at february 28, 2017, should be:

a) $952,000.
b) $1,36.
c) $1,176,000.
d) $1,080,000.

Last year, johnson mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. the firm paid $700 in dividends and had a tax rate of 35 percent. the firm added $2,810 to retained earnings. the firm had no long-term debt. what was the depreciation expense?

Over the past year, three of the star salesmen at family resorts international's corporate office have been lured away to competitors. on top of that, karina, the general manager of the sales department, has noticed that most employees come in, do their jobs, and leave. family resorts offers a good salary, benefits, and tuition reimbursement, as well as a number of development and training programs. most employees seem contented enough, but karina would like to do something to increase the level of engagement among her staff. what do you think karina should do?

Jaynet spends $50,000 per year on painting supplies and storage space. she recently received two job offers from a famous marketing firm – one offer was for $95,000 per year, and the other was for $120,000. however, she turned both jobs down to continue a painting career. if jaynet sells 35 paintings per year at a price of $6,000 each: a. what are her accounting profits? b. what are her economic profits?