Problem 2. The partnership agreement of Wanwan, Layla and Claude provides for the year-end allocation of net income in the following order: First, Wanwan is to receive 10% of net income up to P200,000 and 20% over 200,000 Second, Layla and Claude are each too receive 5% of the remaining income over P300,000. The balance of income is to be allocated equally among the three partners. The partnership income was P500,000 before any allocations to partners. What amount should be allocated to each partner?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 2. The partnership agreement of Wanwan, Layla and Claude provides for the year-end allocation of net income in the following order:

  • First, Wanwan is to receive 10% of net income up to P200,000 and 20% over 200,000
  • Second, Layla and Claude are each too receive 5% of the remaining income over P300,000.
  • The balance of income is to be allocated equally among the three partners.

The partnership income was P500,000 before any allocations to partners. What amount should be allocated to each partner?

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