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

question 163

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 10%, salary allowances of $38,000 and $28,000 respectively, and the remainder equally. How much of the net income of $75,000 is allocated to Xavier?

• A) $66,000
• B) $40,000
• C) $35,000
• D) $43,000

---

Definitions:

Protect

To keep safe from harm or injury; to guard or defend from danger or risk.

Maintain Shape

The ability of an object or material to preserve its configuration or form under stress or after manipulation.

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.

Color Blind

A condition where an individual has difficulty distinguishing between certain colors, often genetic in nature.