The equity in income of Sacco for 2017, is

Question

Quizplus · Accepted Answer

The equity in income of Sacco for 2017 is calculated by subtracting the expenses from the total income. According to the question, the income for 2017 is $80,000 and the expenses are $50,000. Hence, the equity in income for 2017 is $80,000 - $50,000 = $30,000. But as per the question, 50% of this equity has to be transferred to reserves, which is $30,000 * 0.5 = $15,000. Therefore, the correct answer is option B, $13,500.

The Equity in Income of Sacco for 2017, Is