James and Jerry are equal partners in JJ partnership.James works full-time in the business and receives a $40,000 guaranteed salary from the partnership.Jerry is to receive the first $20,000 of profits before the remainder is divided equally between James and Jerry.If the accounting income before either of these payments is $30,000,what is the amount of income or loss allocated to Jerry?
A)0
B)$10,000
C)($5,000)
D)($10,000)

Question

Quizplus · Accepted Answer

$30,000 - $40,000 = ($10,000)x .5 = ($5,000)

James and Jerry Are Equal Partners in JJ Partnership