Partners Acker, Becker & Checker Have the Following Profit and Loss

question 40

Multiple Choice

Partners Acker, Becker & Checker have the following profit and loss agreement:
(1) Acker & Becker receive salaries of $40,000 each
(2) Checker gets a bonus of 10 percent of net income after salaries and bonus (the bonus is zero if salaries exhaust net income) (3) Remaining profits are shared by Acker, Becker & Checker in the following ratios respectively: 3:4:3.
The partnership had a net income of $91,000. How much should be allocated to Checker?

• A)$3,300
• B)$10,300
• C)$1,000
• D)$4,000

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Definitions:

Tangible issues

Problems or matters that can be quantified or measured, often having a physical dimension or concrete implications.

Intangible issues

Issues that are not easily quantified or measured, often related to emotional, psychological, or cultural factors.

Bargaining mixes

The range of items that are up for negotiation between parties, including issues and interests.

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