The Terms of a Partnership Agreement Provide That One of the Partners

question 2

Multiple Choice

The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $20,000 plus a bonus of 10 percent of income after deduction of the bonus and the salary allowance.If income is $130,000,the bonus should be:

• A)$10,000
• B)$11,000
• C)$12,222
• D)$20,000