Partners Acker, Becker & Checker have the following profit and loss agreement:
(1) Acker & Becker receive salaries of $40,000 each
(2) Checker gets a bonus of 10 percent of net income after salaries and bonus (the bonus is zero if salaries exhaust net income) (3) Remaining profits are shared by Acker, Becker & Checker in the following ratios respectively: 3:4:3.
The partnership had a net income of $91,000. How much should be allocated to Checker?
A) $3,300
B) $10,300
C) $1,000
D) $4,000
Correct Answer:
Verified
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