The partners, C and D, share profits 3:2. However, C is to receive a yearly bonus of 20% of the profits, in addition to his profit share. The partnership made a net income for the year of P960,000 before the bonus. Assuming C’s bonus is computed on profit after deducting said bonus, how much profit share will D receive? Choices:
The partners, C and D, share profits 3:2. However, C is to receive a yearly bonus of 20% of the profits, in addition to his profit share. The partnership made a net income for the year of P960,000 before the bonus. Assuming C’s bonus is computed on profit after deducting said bonus, how much profit share will D receive? Choices:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The partners, C and D, share profits 3:2. However, C is to receive a yearly bonus of 20% of the profits, in addition to his profit share. The partnership made a net income for the year of P960,000 before the bonus.
Assuming C’s bonus is computed on profit after deducting said bonus, how much profit share will D receive?
Assuming C’s bonus is computed on profit after deducting said bonus, how much profit share will D receive?
Choices:
P160,000
P307,200
P640,000
P320,000
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