22. One, Two, and Three formed a partnership on January 1, 2020. Eachd. P665,000 and P553,000contributed P420,000. Salaries were to be allocated as follows:One105,000Two105,000Three 157,500Drawings were equal to salaries and be taken out evenly throughout theyear.With sufficient partnership net income, One and Two could split a bonuSequal to 25 percent of partnership net income after salaries and bonus (inno event could the bonus go below zero). Remaining profits were to be splitas follows: 30% for One; 30% for Two, and 40% for Three.For the year, partnership net income was P420,000. Compute the endingcapital for each partner:a. One, P542,850; Two, P542,850; Three, P594,300b. One, P441,000; Two, P441,000; Three, P435,750c. One, P437,850; Two, P437,850; Three, P436,800d. One, P439,250; Two, P439,250; Three, P434,000136

If the Bonus is 25% After Salaries and bonus,, it will be 20% after salaries but before Bonus…

Answered: For the year, partnership net income…

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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For the year, partnership net income was P420,000. Compute the ending capital for each partner: