Two years ago, Choi Toto and Choi Odi started their partnership. Their partnership agreement provided among others are the following: 1. Toto, being a managing partner shall receive an annual salary of 20,000. 2. Odi shall be entitled to an annual bonus of 10% profit after salary, interest, and bonus. 3. Interest of 10% on their respective ending capital balances of 85,000 and 150,000. 4. Any remainder not to exceed 30,000 shall be shared equally and in excess of 30,000 on the ratio of 30%-70%. Profit of the year is 80,000 How much is Odi's share in the partnership profit?
Two years ago, Choi Toto and Choi Odi started their partnership. Their partnership agreement provided among others are the following: 1. Toto, being a managing partner shall receive an annual salary of 20,000. 2. Odi shall be entitled to an annual bonus of 10% profit after salary, interest, and bonus. 3. Interest of 10% on their respective ending capital balances of 85,000 and 150,000. 4. Any remainder not to exceed 30,000 shall be shared equally and in excess of 30,000 on the ratio of 30%-70%. Profit of the year is 80,000 How much is Odi's share in the partnership profit?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Two years ago, Choi Toto and Choi Odi started their
1. Toto, being a managing partner shall receive an annual salary of 20,000.
2. Odi shall be entitled to an annual bonus of 10% profit after salary, interest, and bonus.
3. Interest of 10% on their respective ending capital balances of 85,000 and 150,000.
4. Any remainder not to exceed 30,000 shall be shared equally and in excess of 30,000 on the ratio of 30%-70%.
Profit of the year is 80,000
How much is Odi's share in the partnership profit?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT