Robbie and Ruben are partners operating a portable toilet lease and maintenance operation. For 2017, net...

 

Transcribed Image Text:

Robbie and Ruben are partners operating a portable toilet lease and maintenance operation. For 2017, net income was $50,000 (without taking into consideration the salary allowances). Robbie and Ruben have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 6:4. If their agreement specifies that salaries are allowed only to the extent of income, based on a prorata share of their salary allowances, the division of profits would be: A) $20,000 and $30,000 B) $50,000 and $-0- C) $30,000 and $20,000 D) $25,000 and $25,000 Robbie and Ruben are partners operating a portable toilet lease and maintenance operation. For 2017, net income was $50,000 (without taking into consideration the salary allowances). Robbie and Ruben have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 6:4. If their agreement specifies that salaries are allowed only to the extent of income, based on a prorata share of their salary allowances, the division of profits would be: A) $20,000 and $30,000 B) $50,000 and $-0- C) $30,000 and $20,000 D) $25,000 and $25,000

Answer rating: 100% (QA)

Salary Breakdown Allowance los... View the full answer