Answered

Xavier and Yolanda have original investments of $51,600 and $99,100, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $28,500 and $29,500, respectively; and the remainder to be divided equally.
How much of the net income of $117,500 is allocated to Yolanda?

Answer :

Answer:

$29,360

Explanation:

Xavier's investment = $51,600

Yolanda's investment = $99,100

Net income of $117,500 is allocated to Yolanda:

= Income - Salaries allowances - Interest on original investment

= $117,500 - ($28,500 + $29,500) - [($51,600 + $99,100) × 20%]

= $117,500 - $58,000 - $30,140

= $29,360

Therefore, the net income of $117,500 is allocated to Yolanda is $29,360.

Other Questions