Question

In: Accounting

The partnership contract for Hanes and Jones LLP provides that Hanes is to receive a bonus...

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

Solutions

Expert Solution

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


Related Solutions

Bridget Jones has a contract in which she will receive the following payments for the next...
Bridget Jones has a contract in which she will receive the following payments for the next five years: $19,000, $20,000, $21,000, $22,000, $23,000. She will then receive an annuity of $26,500 a year from the end of the sixth year through the end of the 15th year. The appropriate discount rate is 18 percent. a. What is the present value of all future payments?
Bridget Jones has a contract in which she will receive the following payments for the next...
Bridget Jones has a contract in which she will receive the following payments for the next five years: $22,000, $23,000, $24,000, $25,000, and $26,000. She will then receive an annuity of $28,000 a year from the end of the 6th through the end of the 15th year. The appropriate discount rate is 12 percent. a. What is the present value of all future payments? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using...
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for...
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $500 annual fee plus $10 per tax return for a license to use Mega Tax software. (a) What is the company’s total annual cost for the Mega Tax software if 300 returns are filed? If 400 returns are filed? If 500 returns are filed? Total cost for 300 returns: Total cost for 400 returns: Total cost for 500...
What is the difference between a limited liability partnership (LLP), a mutual fund, and an ETF?...
What is the difference between a limited liability partnership (LLP), a mutual fund, and an ETF? What is the performance record of an S&P500 ETF? What are the long-term performance records of equity mutual funds, linking your answer to the AUM growth of passive investing?
You are to receive an end-of-year bonus of $50,000 increasing by $1000 for each of the...
You are to receive an end-of-year bonus of $50,000 increasing by $1000 for each of the next ten years. If MARR is 12% and inflation rate is anticipated to be 2%, what will be purchasing power?
What are the different forms Public Company, Private Company, Partnership/Limited Liability Partnership (LLP), and Proprietorship/One Person...
What are the different forms Public Company, Private Company, Partnership/Limited Liability Partnership (LLP), and Proprietorship/One Person Company (OPC) of Profit-making Business Organizations? Explain them with the suitable examples.
Form of entity: Limited Liability Limited Partnership (LLLP)(NOT LLP) What is the minimum number of...
Form of entity: Limited Liability Limited Partnership (LLLP) (NOT LLP) What is the minimum number of owners and its default tax classification? Does check-the-box apply to this entity?
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment...
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue $ 70,000 Gain on sale of land (§1231) $ 8,000 Cost of goods sold $ (38,000 ) Depreciation—MACRS $ (9,000 ) Employee wages $ (14,000 ) Cash charitable contributions $ (3,000 ) Municipal bond...
Which method of accounting for contributions of capital to a partnership (Bonus or Goodwill) do you...
Which method of accounting for contributions of capital to a partnership (Bonus or Goodwill) do you think is more representationally faithful and why?
Business law: Kroner LLP, a public accounting firm, through its HR manager Jones, enters into an...
Business law: Kroner LLP, a public accounting firm, through its HR manager Jones, enters into an agreement to hire Wilson as a staff accountant for a compensation of $50,000 a year. The agreement contains a clause that states if Wilson leaves the firm within 2 years she cannot work for “another firm doing any similar accounting work” she did for Kroner. After 16 months Wilson is approached by Ruble Corporation and offered a job for $75,000 a year to be...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT