NC Partnership Has Current Year Net Income of $173,000

question 100

Multiple Choice

NC Partnership has current year net income of $173,000. The partnership agreement states that partners K. Nelson and V. Chavez should receive salary allowances of $42,000 and $50,000, respectively. Any remaining income or loss is to be allocated 35% to Nelson and 65% to Chavez. Nelson's share of the net income for the year is:

• A)$102,550
• B)$85,050
• C)$43,050
• D)$70,350
• E)$60,550

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