Maxwell Is a Partner and Has an Annual Salary of $30,000

question 6

Multiple Choice

Maxwell is a partner and has an annual salary of $30,000 per year, but he actually draws $3,000 per month. The other partner in the partnership has an annual salary of $40,000 and draws $4,000 per month. What is the total annual salary that should be used to allocate annual net income among the partners?

• A)$14,000
• B)$50,000
• C)$70,000
• D)$84,000

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Definitions:

Bloodstream

The flowing body fluid that circulates through the heart, arteries, veins, and capillaries carrying nutrients and oxygen to cells.

Endocrine System

A network of glands that produce and release hormones into the bloodstream to regulate various body functions including growth, metabolism, and sexual development.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, playing a key role in sleep and dreaming.

Thyroid Gland

A butterfly-shaped gland located in the neck, responsible for producing hormones that regulate metabolism and energy levels.