Espiritu and Cheng have the following profit and loss agreement: salaries of P30,000 and P45,000 for Espiritu and Cheng, respectively; a bonus to Espiritu of 10% of profit after salaries and bonus; interest of 10% on average capital balances of P20,000 and P35,000 for Espiritu and Cheng, respectively; and any balance equally. If the profit is P102,500, how much should be allocated to Espiritu? a. P58,250 C. P44,250 d. P44.125 b. P47,796

Espiritu and Cheng have the following profit and loss agreement: salaries of P30,000 and P45,000 for Espiritu and Cheng, respectively; a bonus to Espiritu of 10% of profit after salaries and bonus; interest of 10% on average capital balances of P20,000 and P35,000 for Espiritu and Cheng, respectively; and any balance equally. If the profit is P102,500, how much should be allocated to Espiritu? a. P58,250 C. P44,250 d. P44.125 b. P47,796

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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