Asked by Julio Cesar Meirelles on May 29, 2024
Verified
Mark and Bonnie are partners.Mark contributed $30,000 of capital to the partnership and Bonnie contributed $15,000.Mark does 70 percent of the partnership's work,while Bonnie does 30 percent.They agree that Mark will assume 60 percent of partnership losses and Bonnie 40 percent.They have not decided how to share profits.The partnership earns a profit of $90,000.What is Bonnie's share of the profits?
A) $45,000
B) $30,000
C) $27,000
D) $36,000
Capital Contributed
This refers to the amount of money or value of other assets that owners or shareholders have provided to a company for use in the business.
Partnership's Work
The projects, tasks, or business operations undertaken by a partnership as a collective.
Partnership Losses
Denotes the deficits shared by partners in a business partnership, reflecting negatively on the partnership's fiscal health and possibly impacting individual partners' finances based on their share.
- Comprehend the division of profits and losses and the factors affecting such division in partnerships.
Verified Answer
NM
Nijae MooreMay 31, 2024
Final Answer :
A
Explanation :
Unless there is an agreement to the contrary,partners share partnership profits equally,according to the number of partners,and not according to their capital contributions or the amount of time that each devotes to the partnership.
Learning Objectives
- Comprehend the division of profits and losses and the factors affecting such division in partnerships.