Robbie and Ruben Are Partners Operating a Portable Toilet Lease

question 38

Multiple Choice

Robbie and Ruben are partners operating a portable toilet lease and maintenance operation. For 2017, net income was $50,000 (without taking into consideration the salary allowances) . Robbie and Ruben have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 6:4. If their agreement specifies that salaries are allowed only to the extent of income, based on a prorata share of their salary allowances, the division of profits would be:

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

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Definitions:

Full Refund

The total return of money paid for a product or service, typically due to dissatisfaction or a defect.

Sexual Harassment

Unwanted or inappropriate sexual advances, remarks, or actions, often creating a hostile or offensive environment.

Top Management Support

The guidance and backing provided by the highest levels of an organization's management, crucial for the success of projects and initiatives.

Filing Grievances

The formal process of lodging a complaint or dissatisfaction with a product, service, or situation within an organization.