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6. Martinez is trying to decide whether to accept a salary of P60,000 or as of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 salary b. P210,000 C. P285,000 d. P310,000

6. Martinez is trying to decide whether to accept a salary of P60,000 or as of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 salary b. P210,000 C. P285,000 d. P310,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6. Martinez is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 b. P210,000 C. P285,000 d. P310,000
Transcribed Image Text:6. Martinez is trying to decide whether to accept a salary of P60,000 or a salary of P25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be P75,000. What amount of income would be necessary so that Martinez would consider the choices to be equal? a. P175,000 b. P210,000 C. P285,000 d. P310,000
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