Partnership Net Income of $40,000 Is to Be Divided Between

question 83

Multiple Choice

Partnership net income of $40,000 is to be divided between two partners, Reese Row and Andrew Young, according to the following arrangement: There will be salary allowances of $25,000 for Row and $10,000 for Young, with the remainder divided 65:35. How much of the net income will be distributed to Row and Young, respectively?

• A)$27,500 and $12,500
• B)$26,000 and $14,000
• C)$28,250 and $11,750
• D)$28,500 and $11,500

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