Xales and Yolanda have original investments of $45,500 and $110,000, respectively, in a partnership. The articles of partnership include the following provisions regard division of net income: interest of onginal investment at 20%; salary allowances of $28,400 and $29,200, respectively, and the remainder to be divided equally. How much net income of $109,700 is allocated to Yolanda? a. $51,200 b. $61,700 c. $22,000 d. $78,040

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BCRQ
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Xales and Yolanda have original investments of $45,500 and $110,000, respectively, in a partnership. The articles of partnership include the following provisions regard division of net income: interest of onginal investment at 20%; salary allowances of $28,400 and $29,200, respectively, and the remainder to be divided equally. How much net income of $109,700 is allocated to Yolanda?

a. $51,200

b. $61,700

c. $22,000

d. $78,040

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