Answer:
The correct answer is option (C):
$30,000 to D; $20,000 to E
Explanation:
The key to solving this problem is to take not of the ratio at which income are shared which is 3:2 for partners D and E respectively. This means that out of every 5 parts (3 + 2), partner D gets 3 parts and the remaining 2 parts is for partner E.
Amount available to be shared = $50,000
Therefore amounts each partner gets is calculated thus:
Partner D:
3/5 of 50,000
= 3/5 × 50,000 = 0.6 × 50,000 = $30,000
Partner E:
2/5 of 50,000 = 0.4 × 50,000 = $20,000
hence partner D gets $30,000 while partner E gets $20,000
