If the partnership agreement provides a formula for the computation of a bonus to the partners,the bonus would be computed
A)next to last,because the final allocation is the distribution of the profit residual.
B)before income tax allocations are made.
C)after the salary and interest allocations are made.
D)in any manner agreed to by the partners in the partnership agreement.

Question

Quizplus · Accepted Answer

The correct answer is D because the partnership agreement defines how bonuses are computed among partners, including when in the process they are calculated. This can vary based on the specific terms agreed upon by the partners.

If the Partnership Agreement Provides a Formula for the Computation