Question

The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance. If income is $150,000, the bonus should be:

A. $18,000
B. $20,000
C. $24,000
D. $30,000

Answer 1

The bonus for the partner is calculated by first subtracting the salary allowance from the total income and then applying the 20% bonus rate to the remaining amount. In this case, the bonus amounts to $24,000 (20% of $120,000), making the correct answer C.

Step-by-step explanation:

The question asks to calculate the bonus for a partner based on a partnership agreement provision. This is a mathematical problem within the scope of business studies, specifically related to profit distribution in partnerships.

To find the bonus amount, we first deduct the salary allowance from the income, then calculate 20% of the remaining amount as the bonus:

Income = $150,000
Salary allowance = $30,000
Income after salary deduction = $150,000 - $30,000 = $120,000
Bonus = 20% of Income after salary deduction

Bonus calculation:
Bonus = 0.20 × Income after salary deduction
Bonus = 0.20 × $120,000
Bonus = $24,000

Therefore, the correct answer is C. $24,000.

Answer 2

The correct answer is C: Bonus= $24000

Step-by-step explanation:

The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus of 20 percent of income after deduction of the salary allowance.

The formula to calculate the bonus is:

Bonus=0,20*(Income-salary)

If income is $150000

Bonus= 0,20*(150000-30000)=$24000