Question

Xun, Yue and Zhuo have interests in XYZ Partnership. Partnership income for the year is $350,000. The partnership agreement specifies that Xun is to receive an annual salary of $200,000, Yue is to receive an annual salary of $50,000, and Zhuo is to receive an annual salary of $120,000. Any remaining income or loss is to be divided between the three partners in a 2:1:1 ratio. Salaries are to be fully implemented.Partnership income allocated to Yue is:____?

Answer 1

Answer: 45000

Step-by-step explanation:

Answer 2

$45,000

Step-by-step explanation:

For computing the partnership income allocated to Yue, first we have to determine the remaining partnership income or loss which is shown below:

= Partnership income - Annual salary received by Xun - Annual salary received by Yue - Annual salary received by Zhuo

= $350,000 - $200,000 - $50,000 - $120,000

= -$20,000

So, the partnership income would be

= Annual salary received by Yue - remaining partnership loss × his share

= $50,000 - $20,000 × 1 ÷ 4

= $50,000 - $5,000

= $45,000