Item No. 19 is based on the following information: On January 1, 200C, Bee and Gees had capital balances of P 250,000 and P 200,000, respectively. Their profit and loss sharing agreement has the following provisions: Annual salary of P 200,000 to Gees and P 90,000 to Bee; 10% interest on the opening capital; The remainder of the profit is to be divided equally. 19. If the profit for the year 200C was P 120,000, how much was the share of Bee? a. P 62,500. P 112,500. C. b. P 87,500. d. P 117,500.
Item No. 19 is based on the following information: On January 1, 200C, Bee and Gees had capital balances of P 250,000 and P 200,000, respectively. Their profit and loss sharing agreement has the following provisions: Annual salary of P 200,000 to Gees and P 90,000 to Bee; 10% interest on the opening capital; The remainder of the profit is to be divided equally. 19. If the profit for the year 200C was P 120,000, how much was the share of Bee? a. P 62,500. P 112,500. C. b. P 87,500. d. P 117,500.
SWFT Essntl Tax Individ/Bus Entities 2020
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ISBN:9780357391266
Author:Nellen
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Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 16P
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Transcribed Image Text:Item No. 19 is based on the following information:
On January 1, 200C, Bee and Gees had capital balances of P 250,000 and
P 200,000, respectively. Their profit and loss sharing agreement has the
following provisions:
Annual salary of P 200,000 to Gees and P 90,000 to Bee;
10% interest on the opening capital;
O The remainder of the profit is to be divided equally.
19. If the profit for the year 200C was P 120,000, how much was the share of
Bee?
a. P 62,500.
c. P112,500.
b. P 87,500.
d. P 117,500.
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