Evans, Fitch, and Gault operate a partnership with a complex profit and loss sharing agreement. The average capital balance for each partner on December 31, 2006 is P300,000 for Evans, P250,000 for Fitch, and P325,000 for Gault. An 8% interest allocation is provided to each partner. Evans and Fitch receive salary allocations of P10,000 and P15,000, respectively. If partnership net income is above P25,000, after the salary allocations are considered (but before the interest allocations are considered), Gault will receive a bonus of 10% of the original amount of net income. All residual income is allocated in the ratios of 2:3:5 to Evans, Fitch, and Gault, respectively. Assuming the partnership income is P250,000, how much must be the allocated income to be given to Gault?
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Evans, Fitch, and Gault operate a partnership with a complex
Assuming the partnership income is P250,000, how much must be the allocated income to be given to Gault?
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