Kenya sells her 20% partnership interest having a $28,000 basis to Ebony for $50,000 cash At the time of the sale, the partnership has no liabilities and its assets are as follows: Basis FMV Cash Unrealized receivables Land $20,000 60,000 100,000 $20,000 110,000 Ordinary income recognized by Kenya as a result of the sale is a. $0 b. $22,000 c. $12,000 d. $10,000

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.