Xavier and Yolanda Have Original Investments of $50,000 and $100,000

question 88

Multiple Choice

Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $34,000 and $26,000, respectively; and the remainder to be divided equally. How much of the net income of $120,000 is allocated to Yolanda?

• A) $46,000
• B) $61,000
• C) $60,000
• D) $66,000

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Definitions:

Lingual Frenulum

A fold of mucous membrane located under the tongue, which assists in the mobility and positioning of the tongue.

Vestibule

A space or cavity at the entrance of some structures in the body, such as the mouth, ear, or nose.

Gingivae

Also known as gums, these are the soft tissues that surround and protect the teeth in the mouth.

Papillae

Projections on the surface of the tongue that contain taste buds, involved in the sensation of taste.