Answer:
A. $63,000.
Explanation:
The computation of Wasser total share of net income is shown below:
= Annual compensation + interest on capital + share of net income
where,
annual compensation is $10,000
Interest on capital = capital × rate = $150,000 × 10% = $15,000
And, the share of net income equals to
= Net income - total interest on capital - wasser compensation
= $150,000 - 10% × ($100,000 + $150,000 + $200,000) - $10,000
= $150,000 - $45,000 - $10,000
= $95,000
Now put these values to the above formula
So, the answer would be equal to
= $10,000 + $15,000 + 40% × $95,000
= $25,000 + $38,000
= $63,000
