Partnership net income of $66,000 is to be divided between two partners,Julia Hood and Brian Duffy,according to the following arrangement: There will be salary allowances of $40,000 for Hood and $20,000 for Duffy,with the remainder divided equally.How much of the net income will be distributed to Hood and Duffy,respectively?
A) $33,000 and $33,000
B) $42,000 and $24,000
C) $43,000 and $23,000
D) $44,000 and $22,000

Question

Partnership net income of $66,000 is to be divided between two partners,Julia Hood and Brian Duffy,according to the following arrangement: There will be salary allowances of $40,000 for Hood and $20,000 for Duffy,with the remainder divided equally.How much of the net income will be distributed to Hood and Duffy,respectively?
A) $33,000 and $33,000 
B) $42,000 and $24,000 
C) $43,000 and $23,000 
D) $44,000 and $22,000

Quizplus · Accepted Answer

The total salary allowances for the two partners is $40,000 + $20,000 = $60,000.

Therefore, the remaining net income to be divided equally is:

$66,000 - $60,000 = $6,000

This remaining amount will be divided equally between the two partners:

$6,000 / 2 = $3,000

Thus, the total income for each partner will be:

Julia Hood: $40,000 + $3,000 = $43,000
Brian Duffy: $20,000 + $3,000 = $23,000

Therefore, the correct choice is (C) $43,000 and $23,000.

Partnership Net Income of $66,000 Is to Be Divided Between