Maxwell is trying to decide whether to accept a salary of $40,000 or a salary of P25,000 plus a bonus of 10% of profit after salaries and bonus, as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of profit would be necessary so that Maxwell would consider the choices to be equal?

Maxwell is trying to decide whether to accept a salary of $40,000 or a salary of P25,000 plus a bonus of 10% of profit after salaries and bonus, as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of profit would be necessary so that Maxwell would consider the choices to be equal?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

See similar textbooks

Similar questions

Maxwell is trying to decide whether to accept a salary of P40,000 or salary of P25,000 plus a bonus of 10% of net income after salaries and bonus as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of income would be necessary so that Maxwell would consider choices to be equal?
Romeo is trying to decide whether to accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of income would be necessary so that Romeo would consider the choices equal: A. 165,000 B. 290,000 C. 265,000 D. 305,000
Maxwell is trying to decide whether to accept a salary of ₱40,000 or a salary of ₱25,000 plus a bonus of 10% of profit after salaries and bonus, as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be ₱100,000. What amount of profit would be necessary so that Maxwell would consider the choices to be equal?
Tyrone is trying to decide whether to accept a salary ofP40,000 or a salary or P25,000 plus a bonus of 10% of net income after salaries and bonus as a way of dividing profits among the partners. Salaries traceable to the other partners is P100,000. What is the amount of income would make the choices equal?
Gerald is trying to decide wheter to accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be P100,000. What amount of of income would be necessary so that Lancelot would consider the choices to be equal? P165,000 P290,000 P305,000d. P256,000
Anne is trying to decide whether to accept a salary of P80,000 or a salary of P50,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P200,000. What amount of income would be necessary so that Anne would consider the choices to be equal?
5. Dali is trying to decide whether to accept a salary of P80,000 or a salary of P50,000 plus a bonus of 10% of net income after salary and bonus as a means of allocating profitamong the partners. Salaries traceable to the other partners are estimated to beP200,000. What amount of income would be necessary so that Dali would consider thechoices equal?
THEY APPOINTED MARAWI AS MANAGING PARTNER, WHO WILL RECEIVE A SALARY OF P 10,000 PER MONTH. MITOR WILL BE AN INDUSTRIAL PARTNER WHO WILL RECEIVE A JUST SUM OF 10% OF THE NET PROFITS. MISERIA ON THE OTHER HAND , CHOSE TO BE A LIMITED PARTNER AND THE LIQUIDATING PARTNER. THE PROFITS WILL BE DIVIDED ACCORDING TO THEIR CAPITAL CONTRIBUTION AFTER DEDUCTING THE SALARIES OF MANAGING PARTNER MARAWI AND 10% SHARE OF MITOR. REQUIRED: PREPARE THE TRIAL BALANCE
ELISE and FIORA are considering forming a partnership whereby profits will beallocated through the use of salaries and bonuses. Bonuses will be 10% of net income after total salaries and bonuses. ELISE will receive a salary of P30,000 and a bonus. FIORA has the option of receiving a salary of P40,00 and a 10% bonus or simply receiving a salary of P52,000. Both partners will receive the same amount of bonus. Determine the level of net income that would be necessary so that FIORA would be indifferent to the profit sharing option selected.
Partners A, B and C are contemplating using the following profit distribution plan: Salary is to be given to A in the amount of P60,000, with the remainder in an equal rates to all partners. A is guaranteed a minimum profit share of P100,000. a) Profit for the first year is P240,000 b) Profit for the second year is P150,000. Compute for the profit share of partners B and C in both years.
Tanisha is to receive 25% of the profits from partnership Plumeria Designs, before taking into account any guranteed payment, but not less than 8,000. If the partnership's income is 16000 before taking into account guaranteed payments, how much does Tanisha receive as a guranteed payment?Search instead for Tanisha is to receive 25% of the profits from partnership Plumeria Designs, before taking into account any guranteed payment, but not less than 8,000. If the pernership's income is 16000 before taking into account guaranteed paymens, how much does Tanisha receive as a guranteed payment?
In addition, the partners are paid annual salaries of P600,000 and P400,000 to Benedict and Lord each respectively. The partners also withdraw P100,00 every quarter. Assuming that the partners’ return on invested capital is 20% per annum, given on average capital for the year and the balance of profits is allocated equally, the allocation of profits should be?