Question

The partnership contract for Hanes and Jones LLP provides that Hanes is to receive a bonus of 20% of net income (after the bonus) and that the remaining net income is to be divided equally. If the partnership income before the bonus for the year is $57,600, Hanes’ share of this pre-bonus income is:

A. $28,800.
B. $33,600.
C. $34,560.
D. $35,520.
E. $38,40

Answer 1

share of pre bonus income = $33600

so correct option is B. $33,600

Step-by-step explanation:

given data

receive bonus = 20% of net income

partnership income before the bonus = $57,600

to find out

share of pre bonus income

solution

we know that share of pre bonus income will be here as

share of pre bonus income = Bonus + Share of remaining net income ..............1

put here value we get

share of pre bonus income =
`(20)/(120)+ (57600 - (20)/(120)*57600) * (1)/(2)`

solve it we get

share of pre bonus income = $33600

so correct option is B. $33,600