Partnership net income of $33,000 is to be divided between two partners, Elan Chan and Roy Anderson, according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson, with the remainder divided equally. How much of the net income will be distributed to Chan and Anderson, respectively?

Question

Quizplus · Accepted Answer

The total salary allowances for both partners is $20,000 + $10,000 = $30,000.

Subtracting the salary allowances from the net income leaves $33,000 - $30,000 = $3,000 to be divided equally between the two partners.

Dividing $3,000 equally gives each partner $1,500.

Adding the salary allowances to each partner's share gives:

Elan Chan: $20,000 + $1,500 = $21,500 
Roy Anderson: $10,000 + $1,500 = $11,500

Therefore, the answer is B) $21,500 and $11,500.

Partnership Net Income of $33,000 Is to Be Divided Between