Reference no: EM132641339

The partners then agreed to use the asset revaluation method effected to the building in admitting Curry. They have also agreed that Curry is to receive an annual salary of P75,000, while Allen is to receive 20% bonus. Payton will receive a 15% interest in his capital balance as of the beginning of the year. The rest of the profit is to be shared equally. Beyond the Arc earned P300,000 during 2020. The partners contemplated on how Allen's bonus will be applied.

Problem 1: What was the profit distribution for curry considering that the bonus is based on net income before salary, interest and bonus?

Option 1: P 105,000

Option 2: P112,500

Option 3: P75,000

Option 4: P90,000

Problem 2: What was the profit distribution for Payton considering that the bonus is based on net income after salary, interest and bonus?

Option 1: P146,667

Option 2: P116,667

Option 3: P105,000

Option 4: P131,111

Problem 3: What was the profit distribution for Allen considering that bonus is based in net income only after bonus?

Option 1: P90.000

Option 2: P86,667

Option 3: P75,000

Option 4: P83,333