The partnership agreement of Axel, Berg & Cobb provides for the year-end allocation of net income in the following order:
First, Axel is to receive 10% of net income up to $100,000 and 20% over $100,000.
Second, Berg and Cobb are to receive 5% each of the remaining income over $150,000.
The balance of income is to be allocated equally among the three partners.
The partnership's net income for the year was $250,000 before any allocations to partners. What amount should be allocated to Axel?
a. $106,667
b. $108,000
c. $110,000
d. $101,000