Partners Bob and Don Have Agreed to Share Profits and Losses

question 126

Multiple Choice

Partners Bob and Don have agreed to share profits and losses in an 80:20 ratio respectively, after Bob is allowed a salary allowance of $140,000 and Don is allowed a salary allowance of $70,000. If the partnership had net income of $140,000 for 2010, Don's share of the income would be

• A) $70,000.
• B) $56,000.
• C) $84,000.
• D) $14,000.

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The degree to which employees have control over their own work and decision-making processes within their job roles.

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