Partnership net income of $33,000 is to be divided between two partners,Elan Chan and Roy Anderson,according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson,with the remainder divided equally.How much of the net income will be distributed to Chan and Anderson,respectively?
A) $22,000 and $11,000
B) $21,500 and $11,500
C) $16,500 and $16,500
D) $21,000 and $12,000

Question

Partnership net income of $33,000 is to be divided between two partners,Elan Chan and Roy Anderson,according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson,with the remainder divided equally.How much of the net income will be distributed to Chan and Anderson,respectively?
A) $22,000 and $11,000 
B) $21,500 and $11,500 
C) $16,500 and $16,500 
D) $21,000 and $12,000

Quizplus · Accepted Answer

- Elan Chan's salary allowance is $20,000
- Roy Anderson's salary allowance is $10,000
- The remaining net income after deducting the salary allowances is $33,000 - $20,000 - $10,000 = $3,000
- The $3,000 is then divided equally between Chan and Anderson, giving each of them an additional $1,500. 
- Therefore, Chan's total share of the net income would be $20,000 + $1,500 = $21,500, while Anderson's total share would be $10,000 + $1,500 = $11,500.

Partnership Net Income of $33,000 Is to Be Divided Between