1. Simple interest means that:

the interest rate is the same every period.

the dollar amount of interest is the same every period.

interest is only paid once a year.

the compounding periods are annual.

2. Which of the following expenses may a partnership elect to amortize?

a. a purchase of building and land?

b. professional fees paid after the partnership begins business

c. employment taxes paid by the partnership

d. advertising before the time partnership begins business