fered the following prof lary plus 10% residual p lary plus 25% bonus of

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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You were offered the following profit sharing options:
• P50,000 salary plus 10% residual profit sharing
• P20,000 salary plus 25% bonus of net income after the bonus
Salaries traceable to other partners totaled P200,000. What is the
level of partnership profit in which you would be indifferent to
either option?
a. P 50,000
P120,000
b. P110,000
d. P180,000
с.
Transcribed Image Text:You were offered the following profit sharing options: • P50,000 salary plus 10% residual profit sharing • P20,000 salary plus 25% bonus of net income after the bonus Salaries traceable to other partners totaled P200,000. What is the level of partnership profit in which you would be indifferent to either option? a. P 50,000 P120,000 b. P110,000 d. P180,000 с.
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