Juan and Pedro’s partnership agreement showed the following: Salaries of P 100,000 will be provided to the partners. Interest of 10% of the ending capital balances for each partner A bonus of 20% of the income after bonus and before tax will be given to Pedro. Any remainder will be distributed 2/5 and 3/5, respectively. Ending capital of Juan and Pedro were P 600,000 and P 800,000, respectively. Income after tax is P 1,200,000. Income tax rate applied was 40%. How much is the share of Pedro?
Juan and Pedro’s partnership agreement showed the following: Salaries of P 100,000 will be provided to the partners. Interest of 10% of the ending capital balances for each partner A bonus of 20% of the income after bonus and before tax will be given to Pedro. Any remainder will be distributed 2/5 and 3/5, respectively. Ending capital of Juan and Pedro were P 600,000 and P 800,000, respectively. Income after tax is P 1,200,000. Income tax rate applied was 40%. How much is the share of Pedro?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Juan and Pedro’s
Salaries of P 100,000 will be provided to the partners.
Interest of 10% of the ending capital balances for each partner
A bonus of 20% of the income after bonus and before tax will be given to Pedro.
Any remainder will be distributed 2/5 and 3/5, respectively.
Ending capital of Juan and Pedro were P 600,000 and P 800,000, respectively. Income after tax is P 1,200,000. Income tax rate applied was 40%. How much is the share of Pedro?
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