The JPB partnership reported net income of $160,000 for the year ended December 31,20X8.According to the partnership agreement,partnership profits and losses are to be distributed as follows: How should partnership net income for 20X8 be allocated to J,P,and B?

Question

The JPB partnership reported net income of $160,000 for the year ended December 31,20X8.According to the partnership agreement,partnership profits and losses are to be distributed as follows:

How should partnership net income for 20X8 be allocated to J,P,and B?
The JPB partnership reported net income of $160,000 for the year ended December 31,20X8.According to the partnership agreement,partnership profits and losses are to be distributed as follows: How should partnership net income for 20X8 be allocated to J,P,and B? A) Option A B) Option B C) Option C D) Option D

Quizplus · Accepted Answer

Based on the partnership agreement, profits and losses are to be allocated as follows: J=50%, P=30%, and B=20%. Therefore, the allocation of the net income of $160,000 would be:

J's share = $160,000 x 50% = $80,000 
P's share = $160,000 x 30% = $48,000 
B's share = $160,000 x 20% = $32,000

Therefore, option C is the correct allocation of partnership net income for 20X8.

The JPB Partnership Reported Net Income of $160,000 for the Year