Question

Xavier and Yolanda have original investments of $45,200 and $109,400, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $26,400 and $30,200, respectively; and the remainder to be divided equally. How much of the net income of $115,800 is allocated to Yolanda?

Answer 1

Answer: Yolander's allocation of the net income = $66,180

Explanation:

GIVEN the following ;

Net income = $115,800

Xavier's investment = $45,200

Yolander's investment = $109,400

Sharing of net income :

20% of each partner's original investment

Xavier's salary =$26, 400

Yolander's salary = $30,200

Remainder to be shared equally

Yolander's share = salary + (0.2 × $109,400) + (net income left ÷2)

Yolander's percent amount of original investment = 0.2 × $109,400 = $21,800

Yolander's percent amount of original investment = 0.2 × $45,200 = $9,040

Net income left = $115800 - $(9040 + 21800 +30200 +26400) = $28360

Each partner's share = $28360/2 = $14,180

Yolander's allocation = $(30,200 + 21,800 + $14,180) = $66,180