Allison and Josh Are Partners in a Business Allison's Share of the Profits Before Paying Salaries and Interest

question 84

Multiple Choice

Allison and Josh are partners in a business.Allison's capital is $60,000 and Josh's capital is $100,000.Profits for the year are $80,000.They agree to share profits and losses as follows: $\begin{array} { | l | r | r | } \hline & { \text { Allison } } & { \text { Josh } } \\\hline \text { Salaries } & \$ 20,000 & \$ 40,000 \\\hline \text { Interest on capital } & 10 \% & 10 \% \\\hline \text { Remaining profits and losses } & 3 / 5 & 2 / 5 \\\hline\end{array}$ Allison's share of the profits before paying salaries and interest on capital is:

• A)$48,000.
• B)$22,000.
• C)$28,000.
• D)$28,400.

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