Mack and Ruben Are Partners Operating an Electronics Repair Shop

question 24

Multiple Choice

Mack and Ruben are partners operating an electronics repair shop.For 2014, net income, after salaries expense of $150,000 was $50,000.Mack and Ruben have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 6:4.
The division of salaries and profits in total to Mack and Ruben would be:

• A)$30,000 and $20,000
• B)$50,000 and $-0-
• C)$120,000 and $80,000
• D)$25,000 and $25,000

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Definitions:

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit, such as stocks, bonds, real estate, or a business venture.

Balance of Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a given period, indicating a positive balance of trade.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the selling country's national income.

Imports

Goods or services brought into one country from another for sale or use.