If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L?
If the bonus is based on the profit after taxes but before bonus, how much is the bonus of L?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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![Item Nos. 11 and 12 are based on the following information:
The partnership contract of partners L and M provides that L, the
managing partner is allowed a bonus of 20% of the profit after taxes. The
partnership is subject to an income tax rate of 35% of the profit. During 200C,
the partnership earned profit before taxes of P 113,000.
11. If the bonus is based on the profit after taxes but before bonus, how much
is the bonus of L?
а. Р 13,000.
P 14,500.
С.
b. P 13,250.
d. P 14,690.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faffc0f4a-264a-493c-86ad-c32d8f4f8b1c%2Fdacd9735-2c93-42ec-a4c1-b865258538ef%2Fodt2byn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Item Nos. 11 and 12 are based on the following information:
The partnership contract of partners L and M provides that L, the
managing partner is allowed a bonus of 20% of the profit after taxes. The
partnership is subject to an income tax rate of 35% of the profit. During 200C,
the partnership earned profit before taxes of P 113,000.
11. If the bonus is based on the profit after taxes but before bonus, how much
is the bonus of L?
а. Р 13,000.
P 14,500.
С.
b. P 13,250.
d. P 14,690.
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