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1.) Xavier and Yolanda have original investments of $50,000 and $100,000 respect

ID: 2349848 • Letter: 1

Question


1.) 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 20%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $91,000 is allocated to Yolanda?

Answer:

A) $26,500

B) $46,000

C) $45,000

D) $45,500



2.) 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?

Answer:

A) $66,000

B) $40,000

C) $35,000

D) $43,000

Explanation / Answer

D) $45,500 C) $35,000