Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann respectively and 10% interest on original capital. If they agree to share remaining profits and losses on a 3:2 ratio, what will Singer's share of the income be if the income for the year was $50,000?

Question

Quizplus · Accepted Answer

Singer's share includes salary ($12,000), interest on capital ($4,000), and 3/5 of the remaining profit ($6,000), totaling $22,000.

Singer and McMann Are Partners in a Business