Garlic, Pepper, and Salt are partners in a plumbing service. The business reported net income of P108,000 for 20x4. The partnership agreement provides that profits and losses are to be divided equally after Pepper receives a P60,000 salary, Salt receives a P24,000 salary, and each partner receives 10% interest on his beginning capital balance. Beginning capital balances were P40,000 for Garlic, P48,000 for Pepper, and P32,000 for Salt. Pepper’s share of partnership income for 20x4 is:
Garlic, Pepper, and Salt are partners in a plumbing service. The business reported net income of P108,000 for 20x4. The partnership agreement provides that profits and losses are to be divided equally after Pepper receives a P60,000 salary, Salt receives a P24,000 salary, and each partner receives 10% interest on his beginning capital balance. Beginning capital balances were P40,000 for Garlic, P48,000 for Pepper, and P32,000 for Salt. Pepper’s share of partnership income for 20x4 is:
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Garlic, Pepper, and Salt are partners in a plumbing service. The business reported net income of P108,000 for 20x4. The partnership agreement provides that profits and losses are to be divided equally after Pepper receives a P60,000 salary, Salt receives a P24,000 salary, and each partner receives 10% interest on his beginning capital balance. Beginning capital balances were P40,000 for Garlic, P48,000 for Pepper, and P32,000 for Salt. Pepper’s share of partnership income for 20x4 is:
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