Use the Following Information to Answer the Question(s) Below

question 40

Multiple Choice

Use the following information to answer the question(s) below.

Alfred and Barne share profits and losses in a ratio of 2:3, respectively, after salary allowances, interest allowances and bonus allocations. Alfred and Barne receive salary allowances of $30,000 and $60,000, respectively, and both partners receive 10% interest based upon the balance in their capital accounts on January 1. Partners' drawings are not used in determining the average capital balances. Total net income for 2014 is $180,000. If net income after deducting the interest and salary allocations is more than $60,000, Barne receives a bonus of 5% of the original amount of net income.

-What is the total amount for the allocation of interest,salary,and bonus,and how much over-allocation is present?

• A)$180,000 and $0
• B)$240,000 and $60,000
• C)$249,000 and $0
• D)$249,000 and $69,000