Fit and Ryt are partners operating a grocery store. Their partnership agreement requires that profits and losses be di vided as follows: Fit Ryt Salaries P20,000 None Commission on gross sales Interest on average capital balances 2 percent 8 percent None 8 percent Bonus 20% of net income before commission, andinterest but after salaries and bonus Remainder 60% 40% Gross salesfor 2011 were P1,250,000. Income before deducting amountsfor salary, commission, interest and bonus were P200,000. Average capital balances of fit and Ryt are P400,000 and P420,000, respectively. What are the profit share of Fit and Ryt, respectively?

Fit and Ryt are partners operating a grocery store. Their partnership agreement requires that profits and losses be di vided as follows: Fit Ryt Salaries P20,000 None Commission on gross sales Interest on average capital balances 2 percent 8 percent None 8 percent Bonus 20% of net income before commission, andinterest but after salaries and bonus Remainder 60% 40% Gross salesfor 2011 were P1,250,000. Income before deducting amountsfor salary, commission, interest and bonus were P200,000. Average capital balances of fit and Ryt are P400,000 and P420,000, respectively. What are the profit share of Fit and Ryt, respectively?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 16CE

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