Partners Eli and Alex Have Agreed to Share Profits and Losses

question 180

Multiple Choice

Partners Eli and Alex have agreed to share profits and losses in an 80:20 ratio respectively after Eli is allowed a salary allowance of $70000 and Alex is allowed a salary allowance of $35000. If the partnership had net income of $70000 for 2017 Alex's share of the income would be

• A) $35000.
• B) $28000.
• C) $42000.
• D) $7000.

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