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:

Safety Devices

Devices or mechanisms designed to prevent accidents or injuries, often found in vehicles, machinery, and at workplaces.

Low Risk

Situations or investments that have a minimal chance of loss or failure.

High Risk

refers to situations or activities with a high potential for loss or danger, often in the context of investments or decisions.

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A financial product that provides protection against possible future losses in exchange for a premium.