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.

---

Definitions:

Actor-observer Difference

A cognitive bias where people tend to attribute their own actions to external situations while attributing others' actions to their personalities or dispositions.

Bias

A tendency to lean in a certain direction, often unfairly, in thought or decision, usually leading to a prejudiced outcome.

Halo Effect

A cognitive bias where an impression created in one area influences opinion in another area.

Similar-to-me Effect

The tendency to prefer individuals who are perceived to be similar to oneself in terms of attitudes, beliefs, and backgrounds.