Assume that Adam and Eve agreed to the following: 1. Each of them would have a salary of P5,000 per quarter (one-year operation) 2.6% interest on their respective average capital. Adam - P87,500, Eve -P52,500 3. 10% bonus of net income before salaries, interest on capital and before the bonus to Adam, the managing partner. 4. The balance of net income shall be divided on the basis of 60% and 40%, respectively. 5. Net income for the year is P50,000 9. How much is the share in net income for Adam? O a. P29,790 O b. P20,210 P28210

Assume that Adam and Eve agreed to the following: 1. Each of them would have a salary of P5,000 per quarter (one-year operation) 2.6% interest on their respective average capital. Adam - P87,500, Eve -P52,500 3. 10% bonus of net income before salaries, interest on capital and before the bonus to Adam, the managing partner. 4. The balance of net income shall be divided on the basis of 60% and 40%, respectively. 5. Net income for the year is P50,000 9. How much is the share in net income for Adam? O a. P29,790 O b. P20,210 P28210

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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