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net income of P88,000, how much should be allocated to Partner VERNON?

net income of P88,000, how much should be allocated to Partner VERNON?

FINANCIAL ACCOUNTING
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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Partners VERNON and JOSHUA have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for VERNON and JOSHUA, respectively; a bonus to VERNON of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for VERNON and JOSHUA, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner VERNON? Your answer Which of the following is not a characteristic of a corporation? Limited liability of shareholders Separate legal entity Flexible ownership Nontaxable entity
Transcribed Image Text:Partners VERNON and JOSHUA have a profit and loss agreement with the following provisions: salaries of P20,000 and P25,000 for VERNON and JOSHUA, respectively; a bonus to VERNON of 10% of net income after bonus; and interest of 20% on average capital balances of P40,000 and P50,000 for VERNON and JOSHUA, respectively. Any remainder is split equally. If the partnership had net income of P88,000, how much should be allocated to Partner VERNON? Your answer Which of the following is not a characteristic of a corporation? Limited liability of shareholders Separate legal entity Flexible ownership Nontaxable entity
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