Partnership net income of $68,000 is to be divided between two partners, Veronica Hansen and Cecilia Robinson, according to the following arrangement: There will be salary allowances of
$25,000 for Hansen and $18,000 for Robinson, with the remainder divided 60% to Hansen and 40% to Robinson. How much of the net income will be distributed to Hansen and Robinson, respectively?

Question

Quizplus · Accepted Answer

First, allocate the salary allowances: $25,000 for Hansen and $18,000 for Robinson, totaling $43,000. Subtract this from the net income of $68,000, leaving $25,000 to be divided 60% to Hansen and 40% to Robinson. Hansen receives $15,000 (60% of $25,000) plus her salary of $25,000, totaling $40,000. Robinson receives $10,000 (40% of $25,000) plus her salary of $18,000, totaling $28,000.

Partnership Net Income of $68,000 Is to Be Divided Between