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

Hanes' share of this pre-bonus income = Bonus + Share of remaining net income (after the bonus)

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

Hanes' share of this pre-bonus income = $ 33600

Answer

B. $33,600