30) The partnership agreement between N, O, and P provide for the following profit sharing arrangement:...
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30) The partnership agreement between N, O, and P provide for the following profit sharing arrangement: bonus of 20% on net income before bonus to N, interest of 15% on average capital balances, remainder, 5:3:2 for N, O and P, respectively. The average capital balances of N, O and P are P250,000, P330,000 and 500,000 respectively. The share of N, O and P in the net income of P180,000 should be a. P67,500; P43,500; and P69,000 b. P90,000; P54,000; and P36,000 c. P60,000; P60,000; and P60,000 d. P64,500; 44,100; and P71,400 30) The partnership agreement between N, O, and P provide for the following profit sharing arrangement: bonus of 20% on net income before bonus to N, interest of 15% on average capital balances, remainder, 5:3:2 for N, O and P, respectively. The average capital balances of N, O and P are P250,000, P330,000 and 500,000 respectively. The share of N, O and P in the net income of P180,000 should be a. P67,500; P43,500; and P69,000 b. P90,000; P54,000; and P36,000 c. P60,000; P60,000; and P60,000 d. P64,500; 44,100; and P71,400
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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