Response to the following questions:
1. Denzel and Shantell form a partnership by contributing $70,000 and $35,000, respectively. They agree to an interest allowance equal to 10% of each partner's capital balance at the beginning of the year, with the remaining income shared equally. Allocate first-year income of $40,000 to each partner.
2. Which of the following forms of organization do not provide limited liability to all of its owners? (a) S corporation, (b) limited liability company, (c) limited partnership.