Robbie and Ruben Are Partners Operating a Portable Toilet Lease

question 38

Multiple Choice

Robbie and Ruben are partners operating a portable toilet lease and maintenance operation. For 2017, net income was $50,000 (without taking into consideration the salary allowances) . Robbie and Ruben have salary allowances of $90,000 and $60,000, respectively, and remaining profits and losses are shared 6:4. If their agreement specifies that salaries are allowed only to the extent of income, based on a prorata share of their salary allowances, the division of profits would be:

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

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Definitions:

Previous Heterosexual Relationships

Past romantic or sexual relationships between individuals of opposite sex.

Same-Sex Parented Homes

Households where children are raised by parents of the same sex, either biological or adoptive.

Never-Married Single Parent

An individual who has a child or children but has never been married, assuming sole responsibility for parenthood.

MBA

A master's degree in business administration, focusing on equipping students with a broad set of managerial skills.