Nichole is a managing partner of a certain partnership. She receives a bonus as part of her profit and loss allocation. Nichole’s bonus is based on increase in revenues recorded during the period. The bonus arrangement is that Nichole receives one percent on net income for every full percentage point growth in revenues in excess of a five percent revenue growth. During the most recent period, revenues grew from P1,000,000 to P1,080,000 and the net income grew from P196,000 to P240,000. How much bonus will Nichole receive this period? A. 2,200 B. 4,000 C. 7,200 D. 12,000
Nichole is a managing partner of a certain partnership. She receives a bonus as part of her profit and loss allocation. Nichole’s bonus is based on increase in revenues recorded during the period. The bonus arrangement is that Nichole receives one percent on net income for every full percentage point growth in revenues in excess of a five percent revenue growth. During the most recent period, revenues grew from P1,000,000 to P1,080,000 and the net income grew from P196,000 to P240,000. How much bonus will Nichole receive this period? A. 2,200 B. 4,000 C. 7,200 D. 12,000
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 6CPA
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Nichole is a managing partner of a certain partnership. She receives a bonus as part of her profit and loss allocation. Nichole’s bonus is based on increase in revenues recorded during the period. The bonus arrangement is that Nichole receives one percent on net income for every full percentage point growth in revenues in excess of a five percent revenue growth. During the most recent period, revenues grew from P1,000,000 to P1,080,000 and the net income grew from P196,000 to P240,000.
How much bonus will Nichole receive this period?
A. 2,200
B. 4,000
C. 7,200
D. 12,000
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