Nguyen Invested $100,000 and Hansen Invested $200,000 in a Partnership

question 35

Multiple Choice

Nguyen invested $100,000 and Hansen invested $200,000 in a partnership.They agreed to share income and loss by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen,plus an interest allowance on the partners' beginning-year capital investments at 10%,with the balance to be shared equally.Under this agreement,the shares of the partners when the partnership earns a $105,000 in income are:

• A)$52,500 to Nguyen; $52,500 to Hansen.
• B)$35,000 to Nguyen; $70,000 to Hansen.
• C)$57,500 to Nguyen; $47,500 to Hansen.
• D)$42,500 to Nguyen; $62,500 to Hansen.
• E)$70,000 to Nguyen; $60,000 to Hansen.

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