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A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A; P30,000 to B; and none to C. If net income exceeds salaries, then a bonus is allocated to A. The bonus is 5 percent of net income after deducting salaries and the bonus. Residual profits or residual losses are allocated 10 percent to A. 20 percent to B, and 70 percent to C. If net income before salaries and bonus is P140,000, how much is the share of A? A. 50,000 C. 44,000 D. 46,667 B. 47,000

A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A; P30,000 to B; and none to C. If net income exceeds salaries, then a bonus is allocated to A. The bonus is 5 percent of net income after deducting salaries and the bonus. Residual profits or residual losses are allocated 10 percent to A. 20 percent to B, and 70 percent to C. If net income before salaries and bonus is P140,000, how much is the share of A? A. 50,000 C. 44,000 D. 46,667 B. 47,000

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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10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A: P30,000 to B; and none to C. If net income exceeds salaries, then a bonus is allocated to A. The bonus is 5 percent of net income after deducting salaries and the bonus. Residual profits or residual losses are allocated 10 percent to A. 20 percent to B, and 70 percent to C. If net income before salaries and bonus is P140,000, how much is the share of A? A. 50,000 B. 47,000 C. 44,000 D. 46,667 10
Transcribed Image Text:10. A, B, and C are partners and share profits and losses as follows: Salaries of P40,000 to A: P30,000 to B; and none to C. If net income exceeds salaries, then a bonus is allocated to A. The bonus is 5 percent of net income after deducting salaries and the bonus. Residual profits or residual losses are allocated 10 percent to A. 20 percent to B, and 70 percent to C. If net income before salaries and bonus is P140,000, how much is the share of A? A. 50,000 B. 47,000 C. 44,000 D. 46,667 10
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