...midterm exam...? ON Jan. 2, 2010, Basilio and Quezada formed a partnership. Basilio contributed capital of P175,000 and Quezada, P25,000. They agreed to share profits and losses in the ratio of 8:2, respectively. Quezada is the general manager and works in the partnership full time. Quezada is given a salary of P5,000 a month; an interest of 5% of the beginning capital (of both partners) and a bonus of 15% of profit before salary, interest and bonus.
The statement of comprehensive income of the partnership for the year ended Dec. 31,2010 follows:
Net Sales 875000
Cost of Goods Sold 700000
Gross Profit 175000
Expenses (including the salary, interest and the bonus) 143000
Profit 32000
The amount of bonus to Quezada in 2010 amounted to:
a. P13304
b. P16456
c. P18000
d. P20700.
Please show the solution
The statement of comprehensive income of the partnership for the year ended Dec. 31,2010 follows:
Net Sales 875000
Cost of Goods Sold 700000
Gross Profit 175000
Expenses (including the salary, interest and the bonus) 143000
Profit 32000
The amount of bonus to Quezada in 2010 amounted to:
a. P13304
b. P16456
c. P18000
d. P20700.
Please show the solution