Mack and Ruben Are Partners Operating an Electronics Repair Shop

question 18

Multiple Choice

Mack and Ruben are partners operating an electronics repair shop. For 2017, net income, after salaries expense of $150,000 was $50,000. Mack and Ruben have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 6:4. The division of salaries and profits in total to Mack and Ruben would be:

• A) $30,000 and $20,000
• B) $50,000 and $-0-
• C) $120,000 and $80,000
• D) $25,000 and $25,000

---

Definitions:

Economic System

An organized way a society structures its economic activities, such as production, distribution, and consumption of goods and services.

Socialism

A political and economic theory advocating for collective or governmental ownership and management of the means of production and distribution of goods.

Classless Society

A society in which hierarchical divisions based on economic status are absent, aiming for equal access to resources and opportunities for all.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and political theorist whose works have influenced various fields, especially with his critique of capitalism and ideas about socialism and communism.