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6) Xavier and Yolonda have original investments of...

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6) Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 15%, salary allowances of $22,000 and $20,000 respectively, and the remainder equally. How much of the net income of $90,000 is allocated to Xavier? a. $45,000 b. $30,250 c. $42,250 d. $47,750 Please explain how you got the answer

 

Paper#7730 | Written in 18-Jul-2015

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