James and Jerry Are Equal Partners in JJ Partnership

question 30

Multiple Choice

James and Jerry are equal partners in JJ partnership.James works full-time in the business and receives a $40,000 guaranteed salary from the partnership.Jerry is to receive the first $20,000 of profit before the remainder is divided equally between James and Jerry.If the accounting income before either of these payments is $30,000, what is the amount of income or loss allocated to Jerry?

• A)0
• B)$10,000
• C)($5,000)
• D)($10,000)

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Definitions:

Physiological Signs

Observable or measurable functions or responses of the body to various stimuli or conditions.

Primary Control

The effort to change the external world to fit one's needs or desires.

Secondary Control

A coping mechanism that involves adjusting one's own attitudes, goals, or emotions in situations where primary control is not possible.

Facial Expressions

Visible changes in the face that convey an individual's emotional state, intentions, or social communications.