Nguyen Invested $100,000 and Hansen Invested $200,000 in a Partnership

question 11

Multiple Choice

Nguyen invested $100,000 and Hansen invested $200,000 in a partnership.They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen,plus an interest allowance on the partners' beginning-year capital investments at 10%,with the balance to be shared equally.Under this agreement,the shares of the partners when the partnership earns a $105,000 in income are:

• A)$52,500 to Nguyen; $52,500 to Hansen
• B)$35,000 to Nguyen; $70,000 to Hansen
• C)$57,500 to Nguyen; $47,500 to Hansen
• D)$42,500 to Nguyen; $62,500 to Hansen
• E)$70,000 to Nguyen; $60,000 to Hansen

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Definitions:

Epicurus

An ancient Greek philosopher who founded Epicureanism, a philosophy that taught the pursuit of happiness through the elimination of pain and fear, emphasizing simple pleasures, friendship, and a contemplative life.

Exponent

A person who believes in and promotes the truth or benefits of an idea or theory.

Stoicism

The philosophical school that advocates for inner peace by accepting the moment as it presents itself, without being led by desires or fears.

Philosophy

The study of fundamental questions regarding existence, knowledge, values, reason, mind, and language.