Ben and Carrie enter into a partnership agreement whereby they undertake to share profits according to the following rules: (a) Ben and Carrie will receive a salary of $1,500 and $13,500 respectively (b) The next allocation is based on 20% of the parner's capital balances ('c) Any remaining profit or loss is to be borne completely by Carrie The partnership's Net Income for the first year is $40,000. Ben's capital balance is $90,000 and Carrie's capital balance is $10,000 as at the end of the year. Calculate the share of profit/loss to be borne by Carrie. (it's asking for the total share of the Net Income Carrie will obtain) A $ 4,000.00 B $ 17,500.00 C $ 19,500.00 D $ 20,500.00
Ben and Carrie enter into a partnership agreement whereby they undertake to share profits according to the following rules: (a) Ben and Carrie will receive a salary of $1,500 and $13,500 respectively (b) The next allocation is based on 20% of the parner's capital balances ('c) Any remaining profit or loss is to be borne completely by Carrie The partnership's Net Income for the first year is $40,000. Ben's capital balance is $90,000 and Carrie's capital balance is $10,000 as at the end of the year. Calculate the share of profit/loss to be borne by Carrie. (it's asking for the total share of the Net Income Carrie will obtain) A $ 4,000.00 B $ 17,500.00 C $ 19,500.00 D $ 20,500.00
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Ben and Carrie enter into a
(a) Ben and Carrie will receive a salary of $1,500 and $13,500 respectively
(b) The next allocation is based on 20% of the parner's capital balances
('c) Any remaining profit or loss is to be borne completely by Carrie
The partnership's Net Income for the first year is $40,000. Ben's capital balance is $90,000 and Carrie's capital balance is $10,000 as at the end of the year. Calculate the share of profit/loss to be borne by Carrie. (it's asking for the total share of the Net Income Carrie will obtain)
| A | $ 4,000.00 |
| B | $ 17,500.00 |
| C | $ 19,500.00 |
| D | $ 20,500.00 |
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